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Hey. Could you please explain the calculation of part b from this question for Waste and Quality part?
1. How 86% utilization capacity and 80%+ capital utilization?
2. How 0.4% of orders were returned, 1.5% of faulty goods, standard loss of $50,400 and 1.9% of failure rate?Thank you.
I’m sorry, but M/J 2021 on the ACCA site seems to be about a company called Flag Bicycles.
A Google search does indicate that there had been a question called Harray for MJ2021 but it seems to have disappeared and tomhave been replaced by Flag.
Im sorry i dont know whether im able to answer this here as it is tutors
production line is 16
Active hours per day -9
Active days per week – 6 (52 weeks per year)
which means in a year it has – ( 52*6*9*16) 44928 hrs
in minutes it would be -(44928*60) 2695680 min
to produce 1 key 2.2 minutes needed so in 2695680minutes can produce 1225310 keyboards (2695680/2.2)
the actual capacity is 1.22 however has produced 1.05 so utilisation % is 86% (1.05/1.22)faulty good rejected by inspector (15750/1050000) = 1.5%
standard cost is $8 and the good scrapped are 6300 (15750-9450) so standard loss is ($8*6300) $50400
the 0.4% is given in the question as customer complaints
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