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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 16PB: At Stardust Gems, a faux gem and jewelry company, the setting department is a bottleneck. The...

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