MANAGERIAL ACCOUNTING ACCESS CARD
MANAGERIAL ACCOUNTING ACCESS CARD
17th Edition
ISBN: 9781265348939
Author: Garrison
Publisher: MCG
Question
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Chapter 12, Problem 12P

1a.

To determine

The utilization rate is a performance indicator used to make plans and determine the company's success. It is used by manufacturing companies. The utilization rate of equipment can be increased by avoiding machine breakdowns and reducing average setup times.

:

The utilization rate.

2a.

To determine

The difference between the output power and input power is termed loss. The utilization loss can occur due to regular unplanned maintenance, machine breakdown, or higher average setup times.

:

The utilization loss during the week.

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The GNR Manufacturing Co. recorded overhead costs of $21,500 at an activity level of 5,000 machine hours and $8,000 at 2,500 machine hours. The records also indicated that overhead of $10,000 was incurred at 4,200 machine hours. Using the high-low method to estimate the cost equation, determine the variable cost per machine hour.
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