Ruth is working on the budgeted fixed-MOH rate for the upcoming year. Her company has recently purchased some new equipment to increase its capacity. If all resources are in place and everything runs perfectly, the production department can generate 530 units per hour, 24 hours a day, 365 days a year. More realistically, however, the plant will shut down completely for 9 full days a year to observe national holidays, while maintenance and other down time will consume 2 hours of each day, with output being closer to 435 units per hour. Calculate Ruth's theoretical and practical capacity for next year. If budgeted fixed-MOH costs are expected to be $2,720,000, what will the fixed-MOH rate be for the theoretical level? The practical level? (Round per unit answers to 2 decimal places, eg. 15.25.) Capacity Levels Theoretical level Practical level Theoretical level Practical level $ $ units units Budgeted Fixed-MOH Rate per units per units

Ruth is working on the budgeted fixed-MOH rate for the upcoming year. Her company has recently purchased some new equipment to increase its capacity. If all resources are in place and everything runs perfectly, the production department can generate 530 units per hour, 24 hours a day, 365 days a year. More realistically, however, the plant will shut down completely for 9 full days a year to observe national holidays, while maintenance and other down time will consume 2 hours of each day, with output being closer to 435 units per hour. Calculate Ruth's theoretical and practical capacity for next year. If budgeted fixed-MOH costs are expected to be $2,720,000, what will the fixed-MOH rate be for the theoretical level? The practical level? (Round per unit answers to 2 decimal places, eg. 15.25.) Capacity Levels Theoretical level Practical level Theoretical level Practical level $ $ units units Budgeted Fixed-MOH Rate per units per units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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