banner_ad

cost accounts

This query is : Resolved 
Profile Image

Profile Image

(Querist)
19 April 2010 Ques:A machinery was purchased from a manufacturer who claimed that his machine could produce 36.5 tonnes in a year consisting of 365 days. Holidays, break down etc. were normally allowed in the factory for 65 days. Sales were expected to be 25 tonnes during the year and plant actually produced 25.2 tonnes during the year. You are required to state the following figures

a) Rated capacity
b) practical capacity
c) Normal capacity
d) Actual capacity
Profile Image

CMA Ramesh Krishnan

Profile Image

CMA Ramesh Krishnan (Expert)
19 April 2010 1.Rated Capacity - 36.5 Tonnes a year consiting 365 days

2.Practical capacity- 36.5/365 x 300 days (which is 365-65) = 30 tonnes

3. Normal capacity - normally company expecting -25 tonnes

4.Actual capacity - Actual production 25.2.tonnes
Profile Image

CA SURENDRA KUMAR RAKHECHA

Profile Image

CA SURENDRA KUMAR RAKHECHA (Expert)
20 April 2010 Thanks Ramesh for your clear cut answer.

Wish to add here :

Rated capacity is also known as Installed Capacity.
Profile Image

CMA. CS. Sanjay Gupta

Profile Image

CMA. CS. Sanjay Gupta (Expert)
20 April 2010 AGREE WITH EXPERTS
Profile Image

Varun Jain

Profile Image

Varun Jain (Querist)
20 April 2010 Thanks for all experts but also explain me what is rated capacity.
Profile Image

CMA Arif Farooqui

Profile Image

CMA Arif Farooqui (Expert)
26 April 2010 it means capacity of a factory beyond which it cannot manufacture without further capital expenditure.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details