Answer :
Answer:
96.57%
Explanation:
The most efficient capacity utilization rate is 100 units per hour.
The firm used 175 hours and produced 16,900 units in total.
If it had used the hours in the most efficient way, it would have produced a total of:
175 hours x 100 units per hour = 17,500 units
The 16,900 units that it actually produced, as a percentage of the 17,500 units that the firm could have produced is equal to:
16,900 x 100% / 17,500 = 96.57%.
Thus, the capacity utilization rate is 96.57%.
The capacity utilization rate of Hoosier Manufacturing Co. for the month is 96.57%.
Computation:
Given,
Efficient capacity utilization rate =100 units per hour
Operational rate in production line =175 hours utilized
Units produced =16,900 units
First, calculate the total number of units produced in the efficient working hours:
[tex]\begin{aligned}\text{Units Produced in capacity}&=\text{Operational time}\times\text{Efficient Capacity Utilization Rate }\\&=175\;\text{hours}\times 100\;\text{units per hour}\\&=17,500\;\text{units}\end{aligned}[/tex]
Now, the actual capacity utilization rate will be calculated as follows:
[tex]\begin{aligned}\text{Capacity Utilization Rate}&=\dfrac{\text{Actual Production Units}}{\text{Units Produced in Capacity}}\times100\\&=96.57\%\end{aligned}[/tex]
Thus, the capacity utilization rate is 96.57%.
To know more about capacity utilization rate, refer to the link:
https://brainly.com/question/24097104