In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base
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Complete Question:
Determine the utilization and the efficiency for each of these situations:
a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per
day and an effective capacity of 8 loans per day.
b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the
effective capacity is five furnaces a day.
c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than
those other systems? Explain.
Explanation:
It's not (true) actually. Whether the design capacity is comparatively (high), the utilisation could be (low) even though the efficiency was (high).
Utilisation = Output / Design capacity = x 100%
Efficiency = Output / Effective capacity =
Utilisation =
Efficiency =
U = 1000/2000
e = 1000/1000
Answer:
AFC =
MC = TC
AVC =
AC =
Explanation:
The cost function is given as .
The fixed cost here is 9, it will not be affected by the level of output.
The variable cost is .
AFC =
MC = TC
MC =
MC = 2q
AVC =
AVC =
AVC = q
AC =
AC = }{q}[/tex]
AC =