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GoldenGate Manufacturing inputs 15,000 units into a production process. The normal loss for this process is 3% of the input units, and there are no opening or closing inventories. After the process was complete, the actual output was 14,200 units. Calculate the abnormal loss.

Question

GoldenGate Manufacturing inputs 15,000 units into a production process. The normal loss for this process is 3% of the input units, and there are no opening or closing inventories. After the process was complete, the actual output was 14,200 units. Calculate the abnormal loss.

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Solution

Step 1: Calculate the expected output

The normal loss is 3% of the input units. So, the expected loss is 3/100 * 15,000 = 450 units.

The expected output is therefore the input units minus the expected loss, which is 15,000 - 450 = 14,550 units.

Step 2: Calculate the abnormal loss

The abnormal loss is the difference between the expected output and the actual output.

So, the abnormal loss is 14,550 - 14,200 = 350 units.

This problem has been solved

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