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Hello Sir,
in 2009 jun exam q 1
and actually in all throughput questions
when we take the cost of labour we multiply the available hours by the cost of one hour
but if we consider the units produced then does the answer change
in this case the unit is the bottleneck 450,000 units
we have 225000 hrs available
do we to produce the units based on ranking of the product ,then we use the available hours
please clarify
Thanks for help
The bottleneck is not units – it is the process that is stopping us producing more (the ‘slowest’ process). The calculation of 450,000 was simply one way of deciding which process was the bottleneck.
You could have arrived at the same conclusion (that pressing is the bottleneck) by simply looking at the time for each of the products in each of the processes – for all the products it is pressing where it takes the longest time.Hi Sir,
I it is clear for me that the bottleneck is not units
my question about about the limit of 225000 hrs available
it was asked to calculate the labour charge ,
we can simply say that the labour is 225000 x rate per hour that is fine ,but my question if we consider the no of units of each product how much it will cost
then I think we have to distribute the available hours by ranking the products
like we do for the limiting factorI know this is not requested in throughput question ,but for my check that how work from that hours side 225000 or fro the units side ,
I hope I am not confusing ….
Thanks,
I am a little confused about what the problem is 🙁
Have you watched the free lecture on throughput accounting?
Because in the lecture I go through a full example deciding which products to produce.Also in the ‘Revision Kit Live’ there is a lecture where I go through this particular question in full.
https://opentuition.com/acca/f5/f5-revision-kit/
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