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The annual capacity of a machine is 12,000 hours, with the balance being taken for routine maintenance.It takes 10 hours to process one job (each job = 1 batch) ,.Altogether, there are seven employees who operate the machine at different times.Orders for the first six months of the year, which are typical, have averaged 50 jobs per month.The company expects 300 orders over the next six months.Which of the following is TRUE?
Cost System
A method used to allocate costs to products, services, projects, or departments to facilitate financial analysis, budgeting, and managerial decision-making.
Gallons
A unit of volume measurement used primarily for liquids, commonly used in the United States.
Work in Process
Inventory representing partially finished goods that are in the process of being converted from raw materials to complete products.
Standard Costs
Predetermined costs for materials, labor, and overhead used as benchmarks for measuring performance.
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