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Throughput accounting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput accounting

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 5, 2020 at 5:39 am #583514
    peshy
    Participant
    • Topics: 21
    • Replies: 29
    • ☆☆

    QUESTION 2
    MUSHAMBANZOU Ltd produces three products using three different machines. The following information is available for a product for a period:
    Product
    Selling price per unit Direct materials Direct labour Overheads
    Estimated sale demand (unit)
    Machine hours required per unit: Machine 1 Machine 2 Machine 3
    X Y ($) ($) 20 15
    8 5
    5 3 2 1
    310 280
    4 2 4 3 3 1
    Z ($) 10
    4 2 1
    250
    1
    2 3
    Machine capacity is limited to 2,000 hours for each machine.
    Page 3 of 6
    Total assembly labour hours
    19,000 23,000

    Required:
    (a) Calculate throughput accounting ratio and rank the products.

    How do I identify a bottleneck here

    September 5, 2020 at 9:52 am #583545
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    I am sorry but I cannot follow the figures the way that they have appeared.

    Calculate how many hours would be needed on each machine to be able to produce the expected demand and then see which one is causing the bottleneck.

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    Posts
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