Given the following information, what is the cost of unused capacity?

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Given the following information, what is the cost of unused capacity?

Given the following information, what is the cost of unused capacity? Cost of material supplied is $8,600; Cost of material used is $8,000; Cost of material used per shelf is $8; Cost of material supplied per shelf is $8.60.

There is no unused capacity.
$600.
$1,000.
$0.60.
$6,000.

business accounting

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Answer 1

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Answer #1

Your required answer is option 02 i.e. $600

Explanation:

Unused capacity of material means ideal material or material that has not used

Cost of Unused Capacity = Cost of Material Supplied - Cost of Material Used

$Cost of Unused Capacity = \$8,600 - \$8,000$

$Cost of Unused Capacity = \$600$

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Answer 2

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