In One Week a Work Center Produces 130 Standard Hours

question 7

Multiple Choice

In one week a work center produces 130 standard hours of work. The hours scheduled are
120, and 105 hours are actually worked. The utilization is:

• A) 80.8%
• B) 87.5%
• C) 92.3%
• D) 108.3%
• E) 123.8%

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Definitions:

Job-Order Costing

An accounting method used to assign manufacturing costs to individual products or batches.

Manufacturing Overhead

All the indirect costs associated with the production process, excluding direct materials and direct labor.

Cost of Goods Sold

Costs directly tied to the creation of products sold by a business, covering materials, labor, and factory overhead.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial position.