Amanha just learned her company will start a new workday policy. There is a 60% chance the company will start to enforce the policy this year and she has been tasked in determining how the new policy will affect the company. The new policy will have a significant effect on the company's production output because specific lines will close for periods of time during mandatory layoffs. The current demand of the company is 400,000 units per year. The budgeted fixed MOH costs are $920,000. She has put together the following information to plan for the coming policy: Units per Hour Hours per Day Days per Month Theoretical level 145 20 25 Practical level 130 15 20 Using theoretical capacity, what is the denominator level? Question 2 options: a) 870,000.00 b) 400,000.00 c) 468,000.00 d) 920,000.00 e) Per Hour per Day per Month
Amanha just learned her company will start a new workday policy. There is a 60% chance the company will start to enforce the policy this year and she has been tasked in determining how the new policy will affect the company. The new policy will have a significant effect on the company's production output because specific lines will close for periods of time during mandatory layoffs. The current demand of the company is 400,000 units per year. The budgeted fixed MOH costs are $920,000. She has put together the following information to plan for the coming policy: Units per Hour Hours per Day Days per Month Theoretical level 145 20 25 Practical level 130 15 20 Using theoretical capacity, what is the denominator level? Question 2 options: a) 870,000.00 b) 400,000.00 c) 468,000.00 d) 920,000.00 e) Per Hour per Day per Month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Amanha just learned her company will start a new workday policy. There is a 60% chance the company will start to enforce the policy this year and she has been tasked in determining how the new policy will affect the company. The new policy will have a significant effect on the company's production output because specific lines will close for periods of time during mandatory layoffs. The current demand of the company is 400,000 units per year. The budgeted fixed MOH costs are $920,000.
She has put together the following information to plan for the coming policy:
Units per Hour Hours per Day Days per Month
Theoretical level 145 20 25
Practical level 130 15 20
Using theoretical capacity, what is the denominator level?
Question 2 options:
a)
870,000.00
b)
400,000.00
c)
468,000.00
d)
920,000.00
e)
Per Hour per Day per Month
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