Can Utilization Be over 100?

Note that with this second method it is possible to have a utilization rate that exceeds 100%. If 50 hours of billable time are recorded in a fixed 40-hour week, then the utilization rate would be 50 / 40 = 125%.

Can utilization be more than 100%?

The capacity utilization rate cannot exceed beyond 100% as no machine or human can be expected to work to a full capacity of 100%, the maximum capacity utilization rate that can be expected is of 90% as there can be many problems that can arise both with the man and the machine.

What is high capacity utilization?

It means that the higher the capacity utilization, the lower the cost per unit, allowing a business to gain an edge over its competitors. Many large companies aim to produce as close to the full capacity rate (100%) as possible.