Question 1
The budgeted fixed manufacturing cost rate is the lowest for ________.
◦ practical capacity
◦ theoretical capacity
◦ master-budget capacity utilization
◦ normal capacity utilization
Question 2
Which of the following assumes that capacity will be decreased because of slowdowns due to plant maintenance or other interruptions of the production lines?
◦ Practical capacity
◦ Theoretical capacity
◦ Master-budget capacity utilization
◦ Normal capacity utilization