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A company makes a product for which the standard hour is 0.2. The budgeted production hours for a given week were 10,500. During the week

A company makes a product for which the standard hour is 0.2. The budgeted production hours for a given week were 10,500. During the week the production staff were able to produce 1,980 units of product. Actual wage costs were $65,000 and idle time was recorded as $1,625. The wage rage was $6.50 per hour.

The efficiency ration was therefore:

a.

97.5%

b.

94.3%

c.

99.0%

d.

101.5%

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