Question

Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 195 units per hour. In the month of July, the company operated the production line for a total of 365 hours and produced 45,400 units of output. What was its capacity utilization rate for the month

Answer 1

124.38%

Step-by-step explanation:

capacity utilization rate is the rate at which productive capacity or output is being utilized. It is denoted by the equation:

Capacity utilization = [actual output/ potential output] %

= (45,400/365) %

=124.38%