cost accounts
This query is : Resolved
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
a) Rated capacity
b) practical capacity
c) Normal capacity
d) Actual capacity
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
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
20 April 2010
Thanks Ramesh for your clear cut answer.
Wish to add here :
Rated capacity is also known as Installed Capacity.
Wish to add here :
Rated capacity is also known as Installed Capacity.
20 April 2010
AGREE WITH EXPERTS
20 April 2010
Thanks for all experts but also explain me what is rated capacity.
26 April 2010
it means capacity of a factory beyond which it cannot manufacture without further capital expenditure.
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