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Anastaziya [24]
2 years ago
10

The practical capacity for a particular production facility is best described as Select one: A. the highest level of activity po

ssible under any circumstance. B. the highest level of activity possible allowing for normal repairs and maintenance. C. the highest level of activity at which average costs are minimized. D. the level of activity that makes the most practical sense within the framework of a given situation.
Business
1 answer:
masha68 [24]2 years ago
3 0

Answer:

The correct answer is letter "B": the highest level of activity possible allowing for normal repairs and maintenance.

Explanation:

Practical capacity is the maximum level of production a manufacturing company can reach over a determined period. The concept considers the time dedicated to the maintenance of equipment, time employees take off from work, and equipment set up. Practical capacity is used in the firm's budget to calculate the output a firm should reach.

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6 0
2 years ago
Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has
Anni [7]

Answer:

Explanation:

The journal entry is shown below:

Inventory A/c Dr $73,500

       To Accumulated depletion A/c $73,500

(Being the depletion is recorded)

The computation is shown below

First we have to compute the depletion per ton which is shown below:

= (Acquired cost of coal mine +  Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)

= $105

Now if 700 are extracted in first year, so the depletion would be

= 700 × $105

= $73,500

5 0
2 years ago
Florence Inc. lost an entire plant due to an earthquake on May 1, 2018. In preparing its insurance claim on the inventory loss,
Dima020 [189]

Answer:

$483,000

Explanation:

The computation of the estimated inventory on May 1, 2018, is shown below:

= Inventory as on Jan 1, 2018 + purchase of inventory + sales on inventory × gross profit rate - sales on inventory

= $470,000 + $895,000 + $1,260,000 × 30% - $1,260,000

= $470,000 + $895,000 + $378,000 - $1,260,000

= $483,000

By applying the above formula we can get the ending estimated inventory

7 0
3 years ago
A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. If the cost to order napkins is $200.00
vazorg [7]

Answer: 5,000 Boxes.

Explanation:

Given that,

Boxes of napkins uses each year (A) = 62,500

Cost to order napkins (B) = $200.00 per order

Annual carrying cost for one box of napkins (C) = $1.00

Optimal order quantity (EOQ) for napkins = \sqrt{\frac{2\times A\times B}{C} }

                                                                        =\sqrt{\frac{2\times 62,500\times 200.00}{1.00} }

                                                                        = 5,000 Boxes

8 0
3 years ago
The​ ________reveals whether or not additional sales revenue can offset an increase in costs in the flexible budget performance
BARSIC [14]

Answer: (B) Sales volume variance

Explanation:

 The sales volume variance is basically defined as the difference between the expected sold unit and the actual sold unit. The formula of sales volume variance is given by:

Sales volume variance = (Actual sold - Budget sold) × budget price

The sales volume variance is caused due to the price, product recall and the competition. It is also known as the sale quantity variance. The sales volume variance is basically reveals the total additional sale revenue that increase the cost of budget.

Therefore, option (B) is correct.

5 0
3 years ago
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