Answer:
90.77%
its capacity utilization rate for the month is 90.77%
Explanation:
The capacity utilisation rate can be expressed mathematically as;
Capacity utilisation rate = capacity used/Best operating level × 100%
Given;
Total Number of production time = 205hours
Production output/capacity used = 21400 units
Best operation rate = 115units/hour
Best operation output for the month of July( at best operation level )
=115units/hour × 205 hours = 23575 units
Capacity utilisation rate = 21400/23575 × 100%
= 90.77%
