Respuesta :
The budgeted fixed manufacturing cost rate is the lowest for theoretical capacity.
The quantity of throughput that could be achieved if a production facility was able to operate continuously at its highest efficiency level is known as theoretical capacity. Since theoretical capacity is so difficult to achieve in practice, it shouldn't be used for planning or bonus compensation. Many circumstances, including as planned and unplanned maintenance, personnel and raw material shortages, equipment replacements, power outages, flooding, and earthquakes, might prevent a facility from operating at its theoretical capacity.
Based on the machines, people, and space, practical capacity is most likely to occur. Theoretical capacity represents the complete utilization of all resources in an ideal world. It is clear that theoretical capacity is practically unattainable.
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