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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput Accounting- Kaplan Text, Pg 43
Hi John,
Just started studying this topic and have hit a slight wall. I understand the concept of throughout per unit and ratios but cant make out how to calculate these below figures. I’ll try to send as they appear in the book and hopefully they will transpose correctly.
Firstly the answers:
Assembly hours for maximum production: 143.75
Quality Control hours for Max production: 178.33
Packaging Hours for maximum production: 234.17
Sales price per unit:
Alpha: 2
Beta: 2.25
Gamma: 1.75
Direct Materials cost P.U:
Alpha: .5
Beta: .81
Gamma: .35
Direct Labour cost P.U:
Alpha: .3
Beta: .6
Gamma: .5
Machine time per unit:
(Assembly in minutes)
Alpha: 2
Beta: 3
Gamma: 2.5
(Quality control in minutes)
Alpha: 3
Beta: 4
Gamma: 2
(Packaging in minutes)
Alpha: 4
Beta: 5
Gamma: 3
Weekly Sales demand
Alpha: 1,000 Units
Beta: 1,500 Units
Gamma: 850 Units
Operating expenses, including labor are $4,000
The Maximum hours for the machine are:
150 hours (Assembly)
170 hours (Quality Control)
250 hours (Packaging)
Can you help explain the steps to resolving this as I need these answers to calculate the ratio later on?
Thanks for your help
I do not have the Kaplan text, and if you are watching our free lectures then you do not need a Study Text – what you do need is an Exam Kit so that you can practice exam-standard questions.
Everything needed to be able to attempt this question is covered in my free lectures on throughput accounting. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
