Multiple Choice
Kennywood Inc., a manufacturing firm, is able to produce 1,000 pairs of pants per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 28 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 501,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 519,000. Assume the month has 30 days.
What is the practical capacity for the month?
A) 216,000 units
B) 720,000 units
C) 537,600 units
D) 672,000 units
Correct Answer:

Verified
Correct Answer:
Verified
Q62: The contribution-margin format of the income statement
Q63: Throughput contribution equals _.<br>A) variable costs minus
Q64: Which of the following costs is inventoried
Q65: Jupiter Corporation incurred fixed manufacturing costs of
Q66: To reduce the undesirable incentives to build
Q68: Throughput is a variation of which of
Q69: The production-volume variance, which relates only to
Q70: Using master budget capacity as the denominator
Q71: Fixed manufacturing overhead is a period cost
Q72: Adjusted allocation-rate approach restates all amounts in