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revision mock question

This topic has 3 replies, 3 voices, and was last updated 11 years ago by John Moffat.

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November 17, 2014 at 7:57 am #210603
flotamlambo
Member
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The cost card per unit is as follows
$
Materials 9
Labour(1hour) 6
Other production costs 8
The selling price is $30per unit and each unit requires 6minutes of machine time.Machine time is the bottelneck resource.
What is the return/factory hour in throughput accounting environment
November 17, 2014 at 8:52 am #210613
maas
Member
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Is the answer $210
November 17, 2014 at 8:56 am #210616
flotamlambo
Member
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how do i calculate it
November 17, 2014 at 10:06 am #210648
John Moffat
Keymaster
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The throughput is 30 – 9 = 21 per unit.
The hours per unit are 6/60 = 0.1 hours
So the return per factory hour (or throughput per hour) is 21 / 0.1 = $210
(I suggest that you watch the free lecture on throughput accounting!)
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