In an Operating System, Processes a / B / C

question 25

Multiple Choice

In an operating system, processes A / B / C have the following maximum designed capacity: A = 1700 units / B = 1650 units / C = 1800 units. If the actual measured output is 1400 units, what is the
System efficiency?

• A) 105%
• B) 95%
• C) 75%
• D) 85%
• E) 90%

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Definitions:

Estimated Overhead

Projected costs for running a business that does not directly tie to specific product manufacturing, such as rent, utilities, and management salaries.

Direct Labour-Hours

The total hours of work directly contributed by labor to the production of goods.

Traditional Costing System

A costing methodology that allocates overhead costs to products based on a predetermined overhead rate, often using a single cost driver.

Overhead Cost Per Unit

The allocation of overhead costs to individual units of product, giving a full cost picture of each unit produced.