Question

Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0. 5 DLH per unit. The company reports the following for this period

Answer 1

The subject of this question is Business and it involves calculating the amount of output produced by Manuel Company at 80% of its productive capacity and its corresponding input.

Step-by-step explanation:

The subject of this question is Business, specifically related to production capacity and overhead allocation. To calculate the amount of output produced by Manuel Company at 80% of its productive capacity, we need to multiply the total production by the capacity percentage. In this case, the total production is 250,000 L, so multiplying it by 80% gives us 200,000 L as the output. Since the overhead allocation base is DLH (direct labor hours) and the standard amount per allocation base is 0.5 DLH per unit, we can say that the operation required 200,000 L * 0.5 DLH per unit = 100,000 DLH of input.