A company runs an assembly line two shifts a day; however, the first shift runs the line 7.5 hours and the second shift runs the line 9 hours. The machine has a maximum output of 120 units per hour. Over the last 28 shifts, the first shift averaged 825 units a shift and the second shift averaged 972 units. Which shift better utilizes the machine?
First shift utilization = 825 units per shift/(7.5 hours * 120 units per hour) = 91.7%
Second shift utilization = 972 units per shift/(9 hours * 120 units per hour) = 90.0%
The first shift better utilizes the machine
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The systematic allocation of the costs of natural assets to expense is called
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A) $5,205 B) $5,160 C) $4,757 D) $5,560
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