Documentation and Evaluation of Comparability of Overhead Costs Reported for Depot Level Maintenance.

The purpose of this thesis project is to document and evaluate the comparability of overhead costs reported for depot level maintenance at Naval Air Rework Facilities and Air Foce Air Logistics Centers. The study specifically focuses on the ability to make useful comparisons of relative efficiency between activities and activity groups. The analysis in this study is based on information obtained from on-site visits to Naval Air Rework Facility, North Island and Ogden Air Logistics and by analysis of five years of depot cost data contained in Table 6 of the 7220.29H annual report. The results of this study suggest the existence of a relationship between total overhead cost and direct labor hours for depot maintenance activities which permits limited comparisons of relative efficiency. Aggregating production indirect and general administrative costs as reported in Table 6 of the annual report is recommended for comparisons across services. Systematic differences in identification of costs as either production indirect or general administrative preclude meaningful comparisons at the more detailed level. Keywords Depot Maintenance, Uniform Cost Accounting, DASD Report RCS DD-MA 1397, and DOD 7220.29H.