ACCT3032TuteSols54.pdf - 223 Award 1.00 point Which of the...

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223. Award: 1.00 point 224. Award: 1.00 point Which of the following is not an explanation of why a company would operate at less than theoretical capacity? Scheduled maintenance of equipment. Breakdowns in equipment. Customer demand is less than anticipated. Customer demand is more than anticipated. More than anticipated customer demand would cause the company to operate at theoretical capacity. References Multiple Choice Difficulty: 2 Medium Learning Objective: 10-06 Design cost management systems to assign capacity costs. Marine Enterprises has developed the following unit costs for the production of one of its products, based on a normal activity of 10,000 units per month: Direct materials 2.0 pounds @ $12 = $24.00 Direct labor 1.5 hours @ $15 = $22.50 Variable overhead 120% of direct labor cost Fixed overhead 140% of direct labor cost What is the total amount of direct labor budgeted for a month in which production is expected to be 11,000 units? $165,000. $225,000.
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