Work Center 1 has an available capacity of 1,200 hours per month.

Work Center 1 has an available capacity of 1,200 hours per month.

Which of the following amounts represents the cumulative difference between the required capacity and the available capacity of Months 1 through 37
A . 50
B . 150
C . 1,250
D . 3,750

View Answer

Answer: B

Explanation:

To find the cumulative difference between the required capacity and the available capacity of Months 1 through 37, we need to sum up the differences for each month. The difference for each month is calculated by subtracting the available capacity from the required capacity. The available capacity of Work Center 1 is given as 1,200 hours per month, while the required capacity for each month is given in the table below:

The difference for each month is then:

The cumulative difference is the sum of all the differences:

-200 -100 +0 +100 +200 +300 +400 + … +1,700 = 150