Question

Kensignton Co., a manufacturing firm, is able to produce 1,500 pairs of socks 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 27 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 504,000 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 515,000. Assume the month has 30 days. What is the master-budget capacity utilization level for this budget period

Answer 1

515,000

Step-by-step explanation:

The computation of the master-budget capacity utilization level for this budget period is shown below;

The predicted level of capacity i.e. a present budget required the master budget capacity utilization level i.e. 515,000

So as per the given situation, the same would be represented as an answer

hence, the same would be considered and relevant