Which of the following formulas is used to compute utilization rate?
A) Units entering process / Units passing inspection
B) Service units used / Available service units
C) Standard quantity / Actual quantity
D) (Actual price - standard price) × Actual quantity

Question

Which of the following formulas is used to compute utilization rate?​
A) Units entering process / Units passing inspection
B) ​Service units used / Available service units
C) ​Standard quantity / Actual quantity
D) ​(Actual price - standard price) × Actual quantity

Quizplus · Accepted Answer

Utilization rate is calculated by dividing the service units used by the available service units. Option B is the only formula that matches this definition. Option A is used in calculating yield rate, Option C is used in variance analysis, and Option D is used in calculating price variance.

Which of the Following Formulas Is Used to Compute Utilization