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Good evening sir. I’m having issues with question 10b.8 and 10b.9 In BPP Revision kit, I don’t know how they got the 10% of output = 1/9 of input’ in their answers section for the question. This is for 10b.8.
For 10b.9 I don’t know how they got 20% of sales total time = 25% of active time’ in the answers section.
I know budgeting is Sales- Production-Usuage-Purchases.
Thank you sir.10.b8., For every 100 units input, 10 units (10%) are scrapped and therefore only 90 units are output.
Putting it the other way round, for every 90 units output, they will have add to put in 100 units of which 10 were scrapped. Therefore 10/90 of the output units will have been scrapped.10.b0., For every 100 hours of labour that they pay for, 20 hours will be idle and therefore only 80 hours will be actually worked.
Putting it the other way round, for every 80 hours worked, they will have paid for 100 hours and 20 hours will have been idle.
Therefore 20 out of 80 hours worked will be idle hours. 20/80 = 25% 🙂Ooh.
Thank you for this explanation. It’s clearer to me now. I have my F2 exam on Friday.
Thank you.
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