Mako Division Had the Following Information: What Is the Turnover

question 57

Multiple Choice

Mako Division had the following information: What is the turnover ratio for Mako Division?

• A) 0.200
• B) 0.625
• C) 0.125
• D) 8.000

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Definitions:

Machine Hour

A measure of the amount of time a machine is operated, used as a basis for allocating machine-related costs to products.

Full Cost

The sum of all costs incurred in the production of a product or service.

Fixed Overhead

This refers to the consistent, non-variable costs incurred by a business, regardless of its level of production or sales volumes.

Variable Overhead

Costs that vary with the level of production output, such as utilities for machines and indirect materials.