Because the question says that hair is washed before treatment. The cost of cleaning cost of products for washing is 0.60, and the cost of additional products for treatment is 7.40. So the total cost of products when there is a treatment is 8.00.

hi sir. for the bottleneck per hour, which is Total fixed cost divided by limited hours, why do we took 7200 hours as the limited hours? the 7200 is for senior which is (3person x 2400hour)/ 1 hour per customer = 7200 no. of customers. it is not 7200 hours, right? why we did not qualify 2400hours which is the day they opened the salon (8hour x 6 days per week x 50 weeks = 2400 hour)?

Hi Sir, When calculating cost per bottleneck hour why do we take 7200? instead of 4800? it means that Seniors are doing more cuts and we take the higher figure?

chrisj1 says

This was very helpful. Thank you 馃檪

John Moffat says

Thank you for your comment 馃檪

jhanzebk says

hi sir why material cost for treatment is 8i.e. 7.40+.60 instead of 7.40?

John Moffat says

Because the question says that hair is washed before treatment. The cost of cleaning cost of products for washing is 0.60, and the cost of additional products for treatment is 7.40. So the total cost of products when there is a treatment is 8.00.

tikum says

Hi Sir,

I wish to know why the total cost per bottleneck hour for CUTS is thesame with that of TREATMENTS, that is $42.56.

John Moffat says

It always is the same!! (It is the same as ‘the cost per factory hour’ when we are looking at production businesses as we usually are).

The bottleneck resource is stylists time, and $42.56 is the cost per hour of stylists time.

(The free lecture on throughput accounting may help you here)

alma says

Hello Sir

can you please tell me When calculating cost per bottleneck hour why do we take 7200? instead of 4800?

John Moffat says

Because the limited resource is stylists time, and 3 stylists each with 2,400 hours available is 7,200 hours in total.

ismanizaismail says

hi sir. for the bottleneck per hour, which is Total fixed cost divided by limited hours, why do we took 7200 hours as the limited hours? the 7200 is for senior which is (3person x 2400hour)/ 1 hour per customer = 7200 no. of customers. it is not 7200 hours, right? why we did not qualify 2400hours which is the day they opened the salon (8hour x 6 days per week x 50 weeks = 2400 hour)?

John Moffat says

Because there are 3 stylists and therefore there a 3 x 2,400 hours available!

Adele Islay says

Hi Sir,

When calculating cost per bottleneck hour why do we take 7200? instead of 4800? it means that Seniors are doing more cuts and we take the higher figure?

tayiba1 says

in the middle of lecture i can’t hear you i have refreshed page so many times.