Figure 13-17 -Refer to Figure 13-17.What Is the Amount of Excess Capacity

question 147

Multiple Choice

Figure 13-17

-Refer to Figure 13-17.What is the amount of excess capacity?

• A)Qh - Qf units
• B)Qⱼ - Qf units
• C)Qⱼ - Qh units
• D)Qh - Qg units

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders.

Machine-Hours

The total time machines are operated within a certain period, often used to allocate manufacturing overhead.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of goods, such as salaries of supervisors and the cost of factory utilities.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity base.