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April 14, 2021 at 3:24 pm
Okay sir, when do we use contribution per unit and throughput per unit??
John Moffat says
April 14, 2021 at 4:08 pm
You always use contributions unless the question specifically refers to throughput accounting.
October 29, 2020 at 10:45 pm
For Q3 , I didnt round up/down the time so I got a total of 420 units
If this were not a multiple choice question and I have to type the value, will 420 be considered correct or do I have to round up/down the time?
October 20, 2020 at 4:38 pm
Hi sir, here is my doubt. Alpha. Beta. Gamma
Sales price per unit. $2.00. $2.25. $1.75
Materials per unit. $0.50. $0.81. $0.35
Labour per unit. $0.30. $0.60. $0.50
Machine time per unit:
Assembly ( in min). 2 3. 2.25
Quality control ( in min). 3. 4. 2
Packaging.(in min). 4. 5. 3
Weekly sales demand. 1000 units. 1500 units. 850 units
Operating expense including labour. Are $4000. The maximum hours available for the machine are 150hr(assembly) 170(quality) and 250(packaging)
A). 840 units
B) 1000 units
In this question I understand until ranking step than how to get 1375 units???
Can you please explain me.
Thanks in advance
October 20, 2020 at 4:23 pm
Thank u so much
October 20, 2020 at 8:56 am
I have doubt in qstn 5 why the answer is A my answer for this question is c because As per my my knowledge labour cost is fixed in short term not material but can you please explain me if I am wrong. I will like to know.
October 20, 2020 at 10:07 am
We do assume that all costs (including labour) are fixed except for materials.
This is an assumption that we make, but the question asks which of them are NOT assumptions that we make.
The only assumption listed that is NOT an assumption we make is that all materials are limited.
August 10, 2020 at 11:04 am
August 10, 2020 at 3:32 pm
Very good 🙂
(Although do remember these are just meant to be quick tests to use as you go along. Do make sure that you buy a Revision Kit from one of the ACCA publishers because they contain lots of past exam and exam standard questions (in all the different formats) for practice – practice is vital to passing the exam.)
June 2, 2020 at 6:26 pm
I am a bit a confused with Q2. When calculating the ‘Cost of Factory Hour’, I am not sure why we’re using the budgeted labour hours (ie. 100,000*5) rather than actual hours which will be need for the output? We know that we have 5,000 machine hours and one unit needs 0.2hs; therefore, we can manufacture only 25,000 units. Given than the labour cost is $10 per unit, I assumed that the labour cost would be 10*25,000.
I’ve watched your amazing lectures but did not find an answer to this. Apologies if this has been answered before.
Many thanks in advance,
June 19, 2020 at 12:24 pm
In THROUGHPUT accounting we assume labour cost as fixed cost rather than product cost. As company makes several products. May this help.
June 19, 2020 at 2:57 pm
We assume that labour is a fixed cost in the short-term and so the total labour cost will stay the same as budgeted even if the production changes.
April 29, 2020 at 12:46 pm
My answer of question no.3 of throghput revision test is coming a bit different because of the decimal as i converted 20 mins to hrs i.e 20/60=0.3333 which i considered as0.33hrs and 15 mins to 0.25 hrs so product y production is coming to 420.Please comment if i do this way,is it wrong???Thankyou
April 29, 2020 at 12:56 pm
Although rounding to not usually lose marks, in this case you would get zero because 420 is not one of the choices available. In multiple choice questions in the exam you either get 2 marks or you get 0 marks.
April 25, 2020 at 6:05 pm
Got 80 % : thanks
April 25, 2020 at 6:20 pm
Well done (but make sure you have a Revision Kit from one of the ACCA approved publishers. They are full of past exam and other exam standard questions, and question practice is vital to passing the exam.)
November 26, 2019 at 2:21 pm
I am lost. Question 2. Why do we take into consideration budgeted labour hours @$5 when calculating total factory cost? If we have labour cost @10? And I thought that for total factory cost we just need fixed costs? Am I w
November 26, 2019 at 4:32 pm
In throughput accounting, all costs apart from materials are treated as being fixed costs.
I explain the reason for this in my free lectures and I do suggest that you watch the lectures before attempting the short tests.
September 16, 2019 at 6:24 am
got 80% , thanks for the amazing questions , i was little confused about last question, from option (b) and (c)
October 18, 2019 at 3:25 pm
same to me
September 13, 2019 at 5:29 am
Thanks john for these amazing questions. I hope you record a lecture about bottle neck resource but I’m okay with it as I understood the full concept by carefully going through your notes.
September 13, 2019 at 7:22 am
I will record a lecture when I have the time. However do note that there is a printed answer to the example at the end of the notes.
November 27, 2019 at 8:32 pm
i just confused in through put ratio ratio formula please clear my confuessing i think the option b is correct
July 28, 2019 at 9:52 am
requesting for a lecture about bottlenecks to be added in chapter5
July 28, 2019 at 3:17 pm
July 8, 2019 at 12:21 pm
There is no lecture for bottleneck resources. Please can this be made available. I really appreciate the lectures. Thanks a lot.
I will record a lecture when I have the time.
However the answer to the example is in the notes and should make sense.
June 22, 2019 at 11:37 am
in question 1 we can calculate the throughput either by using through put per unit or through put per factory hour right and in this question both the options are available.
June 22, 2019 at 4:32 pm
No. The throughput account ratio (which is what this question asks for) is always the throughput return per hour divided by the factory cost per hour.
Did you watch the free lectures on this before attempting the test?
June 2, 2019 at 9:33 pm
hi, when calculating return per factory hour, i’m getting my answer as 2.1 as opposed to your 210. please explain
June 3, 2019 at 7:34 am
The return is $21 in 6 minutes.
There are 60 minutes in one hour.
Therefore the return per hour is 60/6 x $21
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