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Activity based budgeting

Mmohamed12y ago
Dear John, plz help this question. it is from Bpp Mock 1 exam. A company manufactures 3 standard products which it sells to several large wholesale chains. production is highly automated and occurs in large batches. Goods are shipped to customers in slightly smaller batches. Details of typical month's output are as follows. product x product y product z units of output 50000 100000 225000 production machine hrs per unit 0.3 0.2 production batch size (units) 1250 2000 3750 shipment batch size (units) 1000 1000 2500 the question is longer than this but when answering the question to get production machine per hour the answer was like the following: PMH X = 50000 x 0.3 = 15000 Y= 100000 x 0.2= 20000 Z= 225000 x 0.4= 90000 My question is where did they get the 0.4 they used in product Z since they did not give us in the question. plz help
John MoffatJohn MoffatTutor12y ago#1
I can only guess that it is a typing error. It should be 225,000 x production machine hrs per unit. However, unless you missed it out when you typed the question, it is missing from the information!!
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