A boiler maintenance team services a design capacity of 8 boilers per day with an effective capacity of 8 boilers per day. What is the team's utilization if it repairs an average of 5 boilers per day?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...
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Subject: Accounting

A boiler maintenance team services a
design capacity of 8 boilers per day
with an effective capacity of 8 boilers
per day. What is the team's utilization
if it repairs an average of 5 boilers per
day?
Transcribed Image Text:A boiler maintenance team services a design capacity of 8 boilers per day with an effective capacity of 8 boilers per day. What is the team's utilization if it repairs an average of 5 boilers per day?
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