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Hi John,
In the answer Kaplan has defined TA ratio as ‘Throughput/total factory cost’.
First of all how did they come up with that relation from TA Ratio = Throughput/Product time on bottleneck divided by Total factory Cost/total time available on key resource?I see they did not change figures to per unit/hour as that can be time consuming and instead used total figures. Said that we should still get the same asnwer regardless whatever way we choose.
I am getting TPAC = 0.27 which is not even one of the answers so I know I am definately doing something wrong.
my calculation is
18-6/2.5 divided by 3500/200.What am i doing wrong please?
Thanks.
I am sorry but I do not have the Kaplan Kit and so I cannot check what you have done.
I only have the BPP Revision Kit.
If the question is listed in the Kaplan Kit as being a past exam question then tell me which exam, because I do have all past exam questions.
Hi John,
No its not listed as being a past exam question.
However I can type in the whole question below and if you can please show me the workings I would really appreciate.The following information is available for a single product:
Units Produced – 500
Time Taken – 200 Hours
Maximum time available – 200 Hours
Materials Purchased – 1000 kg costing $3000
Materials Used – 800Kg
Labour Costs – $2000
Overheads – $1500
Sales – $9000Whats the throughput accounting ratio for this product ?
The return per factor hour = (9,000 – 3,000) / 200 = $30
The cost per factory hour = (2,000 + 1,500) / 200 = $17.50
Therefore the TPAR = 30/17.50 = 1.71
John Thanks a lot for that, much appreciated.
Also just noticed in my first comment I worked out ‘Return per factory hour’ by dividing 12 by 2.5 instead of 0.4, Looks like I just had a moment there.
Regards
Jas.
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