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chapter 7 question 3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › chapter 7 question 3

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
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  • October 5, 2017 at 9:40 am #409533
    Avatarsarangkwon
    Member
    • Topics: 3
    • Replies: 0
    • ☆

    hello,
    In the question 3 in chapter 7 practice questions, I am confusing that why the answer of the capacity ratio is been simply actual hours / budgeted hours although each hours have different units produced. the budgeted 8000 hours is regarding of 20,000units and the actual hours is regarding of 25,000units.

    I thought that
    since they are different hours to produce per unit,
    8000hours / 20,000 unit= 0.4 budgeted hours per unit
    and 0.4hours x 25,000= 10,000, which is budgeted hours to produce 25,000.

    therefore, 11,000 (actual hours) / 10,000 ( budgeted hours) = 1.1
    1.1 x 100 = 110%

    which mistake did i make sir??

    October 5, 2017 at 4:22 pm #409552
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    Please do not post the same question twice – we promise to answer within 24 hours and usually we answer much faster than that.
    Asking the question twice will not get you an answer any faster 🙂

    I have answered your other post!

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  • The topic ‘chapter 7 question 3’ is closed to new replies.

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