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Hi,
I am struggling with the above question for working out TPAR.
The throughput is given for each product. I would usually divide this by time on key resource to come to Return Per Factory Hour. In this case i would divide the throughput by 8 but the answer is different can you explain why and how the working work please.
Regards
AJ
We must have different editions of the Revision Kit, because Q2a in mine is not about throughput accounting.
If you tell me the name of the question then maybe I can find it elsewhere.I have found what I hope is the same question in an old file that I have.
(Just to check, there are three products X, Y and Z and the capacity is restricted by process alpha).
Assuming it is the same question, then the throughput for X = 150 – 70 = $80 per unit.
Since they can produce 1,200 units of X per hour, then the time for each unit is 1/1200 hours.
So the throughput per hour = $80 / (1/1200)
Multiplying top and bottom by 1,200 gives: $80 x 1,200 / 1 = $96,000.(Alternatively, the can produce 1,200 per hour, and since each unit gives $80, then in one hour they can get 1,200 x $80 = $96,000.)
I hope that is the same question, and that if it is then this all makes sense.
However you really should get a current edition of the Revision Kit – partly because of syllabus changes, but also because of the changes there now are to the format of the exam.
Yes that is the question. Okay this is basically working out per day rather then per year.
Thank you for your help John.
Regards
AJ
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