1. Provide several examples of cost objects.

2. Calla Manufacturing Company has 40 machines in its factory. The machines run for two shifts each day, with 30 workers per shift. Allowing for machine maintenance and break time for machine operators, each machine can be used for production for an average of 6.5 hours per shift. Assuming the factory operates for an average of 22 days per month, what is Calla’s practical capacity number of machine hours per month?

3. Kappa Company runs two shifts each day. Workers on average have four weeks off per year and after training and breaks, average 34 hours per week. What is Kappa’s practical capacity number of labor hours per year?