Per the Codification, what is considered the normal capacity of production facilities?
a. The average production over the previous five-year period.
b. Actual production for the period.
c. Actual production for the period plus loss of capacity for planned maintenance.
d. A range that may vary based on business and industry-specific factors.
2. How should unallocated fixed overhead costs be treated?
a. Allocated to finished goods and cost of goods sold based on ending balances in the accounts.
b. Allocated to raw materials, work in process, and finished goods, based on the ending balances in the accounts.
c. Recognized as an expense in the period in which they are incurred.
d. Allocated to work in process, finished goods, and cost of goods sold based on ending balances in the accounts.