Answer the Following Question(s)using the Information Below

question 130

Multiple Choice

Answer the following question(s) using the information below.A manufacturing firm is able to produce 2,000 pairs of shoes per hour, at maximum efficiency.There are three eight-hour shifts each day.Production is actually 1,600 pairs of shoes per hour due to unavoidable operating interruptions.The plant is expected to run every day but was only able to operate for 27 days in September.
-The budgeted fixed manufacturing cost rate is the lowest for

• A)practical capacity.
• B)supply capacity.
• C)master-budget capacity utilization.
• D)normal capacity utilization.
• E)theoretical capacity.

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Definitions:

Interest Costs

The expenses incurred by borrowing money or the costs associated with the use of credit.

Multiple Discriminant Analysis

A statistical technique used to classify observations into predefined categories based on a set of predictor variables.

Statistical Technique

Methods and procedures used to collect, analyze, interpret, and present data to support decision-making.

Observed Characteristics

Traits or features of an individual or entity that can be directly measured or perceived, often used in statistical analysis.