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Exercise 5-2. COMPUTATION OF CAPACITY The Patience Corporation operates six days a week (Monday Saturday) on a two-eight hour shifts. The plant which can complete ten (10) units per hour is closed twelve working days each year for holidays, machines are repaired, oiled and cleaned for about 616 hours during the period. Normal sales demand for its products averages 40,000 units a year over a five-year period. The expected sales volume for the year is 35,000 units. The fixed costs amount to P210000 per year. REQUIRED: 1. Determine the base capacity (in labor hours) for each of the following: (a) maximum capacity; (b) practical capacity; (c) normal capacity: (d) expected actual capacity Compute the fixed costs per hour under each of the four capacities Compute the idle capacity costs under each of the four capacities if the plant operates at 3,400 hours. 2. 3