Answer:
The Capacity utilization rate is 73.94 units per hour for the month.
Explanation:
Provided data,
Output rate = 160 units per hour
In the month of July,
Total production hour = 295 hours.
Total units = 34900 units.
Ideal output units in the month of July = output rate × total production hour
= 160 × 295
= 47200 units.
Capacity utilization rate of production shop is given by,
Utilization rate = (output unit in July ÷ idea output) × 100
= (34900 ÷ 47200) × 100
= 0.7394 × 100
= 73.94 units per hour
So, the Capacity utilization rate is 73.94 units per hour for the month.
