Y5

Question 4 of 6 View Policies Current Attempt in Progress Michelle is working on the budgeted fixed-MOH rate for the upcoming year. Her company has recently purchased some new equipment to increase its capacity. If all resources are in place and everything runs perfectly, the production department can generate 480 units per hour, 24 hours a day, 365 days a year. More realistically, however, the plant will shut down completely for 11 full days a year to observe national holidays, while maintenance and other down time will consume 2 hours of each day, with output being closer to 450 units per hour. Calculate Michelle's theoretical and practical capacity for next year. If budgeted fixed-MOH costs are expected to be $2,800,000, what will the fixed-MOH rate be for the theoretical level? The practical level? (Round per unit answers to 2 decimal places, e.g. 15.25.) Capacity Levels Theoretical level units Practical level units Budgeted Fixed-MOH Rate Theoretical level $ per units $ per units Practical level e Textbook and Media