A Work Center Has 2 Machines That Are Operated 16

question 31

Multiple Choice

A work center has 2 machines that are operated 16 hours a day for 5 days a week. Historically, the utilization has been 85% and the efficiency 105%. What is the rated capacity for this work center? (Rounded)

• A) 71
• B) 99
• C) 130
• D) 143

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Definitions:

Fair Value

An estimation of the market value of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties.

Reporting Unit

A component of an organization for which discrete financial information is available and is reviewed regularly by the operations’ segment manager.

SEC

Stands for the Securities and Exchange Commission, which is a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry, including stock and options exchanges.