Which of the Following Formulas Is Used to Compute Utilization

question 57

Multiple Choice

Which of the following formulas is used to compute utilization rate?​

• A) Units entering process / Units passing inspection
• B) ​Service units used / Available service units
• C) ​Standard quantity / Actual quantity
• D) ​(Actual price - standard price) × Actual quantity

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Definitions:

Production Cost Report

A detailed document outlining the costs associated with the production of goods, including materials, labor, and overhead.

Ending Work In Process

The value of all unfinished goods held by a company at the end of an accounting period.

Transferred Out

Refers to costs or goods that have been moved from one process or department to another in the production process.

Conversion Costs

Costs involved in converting raw materials into finished goods, typically consisting of labor and overhead expenses.