Answer the Following Question(s)using the Information Below

question 88

Multiple Choice

Answer the following question(s) using the information below.A manufacturing firm is able to produce 1,000 pairs of shoes per hour, at maximum efficiency.There are three eight-hour shifts each day.Due to unavoidable operating interruptions, production averages 800 units per hour.In the month of June the plant actually operated only 25 days due to avoidable shut downs.
-The Canada Revenue Agency effectively eliminates the use of certain denominator-level concepts through its income tax rulings.The accepted concept(s) for tax purpose is (are)

• A)theoretical capacity and practical capacity.
• B)master-budget capacity and theoretical capacity.
• C)practical capacity.
• D)master-budget capacity.
• E)normal capacity or master-budget capacity.

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Definitions:

Selling Price

The cost at which an item is offered to buyers in the marketplace.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and factory overhead.

Overhead Applied

is the amount of manufacturing overhead cost allocated to each product or job, based on a predetermined overhead rate.

Machining Department

A section within a manufacturing facility where machining processes, such as cutting, shaping, and drilling, are carried out.