Given the Following Information, What Would Utilization Be? Effective Capacity

question 10

Multiple Choice

Given the following information, what would utilization be? Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day

• A) 1/4
• B) 1/3
• C) 1/2
• D) 3/4
• E) none of these

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

Federal Income Tax

A tax levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.

Payroll Tax Expense

Taxes imposed on employers and employees, calculated as a percentage of salaries paid.

FICA Taxes Payable

Amounts owed by employers and employees for Social Security and Medicare, based on the Federal Insurance Contributions Act.