• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Limiting factors

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Limiting factors

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 6, 2021 at 4:33 pm #642748
    lokeshdh00
    Participant
    • Topics: 133
    • Replies: 130
    • ☆☆☆

    Its a question from specimin exam, To calculate tar ratio, the cost per factory hour is 42.56, And i couldn’t figure that how , its not explained. I tried adding all cost which 186400 ad then divide by total hours ( 8*50*6) but it gives wrong answer

    Q-
    Glam Co is a hairdressing salon which provides both ‘cuts’ and ‘treatments’ to clients. All cuts and treatments at the salon are carried out by one of the salon’s three senior stylists. The salon also has two salon assistants and two junior stylists.

    Every client attending the salon is seen first by a salon assistant, who washes their hair; next, by a senior stylist, who cuts or treats their hair depending on which service the client wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:

    Cut

    (Hours)

    Treatment

    (Hours)

    Assistant

    0.1

    0.3

    Senior stylist

    1.0

    1.5

    Junior stylist

    0.6

    0.5

    The salon is open for eight hours each day for six days per week. It is only closed for two weeks each year. Staff salaries are $40,000 each year for each senior stylist, $28,000 each year for each junior stylist and $12,000 each year for each of the assistants. The cost of cleaning products applied when washing clients’ hair is $1.50 per client. The cost of all additional products applied during a ‘treatment’ is $7.40 per client. Other salon costs (excluding labour and raw materials) amount to $106,400 each year.

    Glam Co charges $60 for each cut and $110 for each treatment.

    The senior stylists’ time has been correctly identified as the bottleneck activity.

    December 6, 2021 at 4:49 pm #642758
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    Please do not type out past exam questions in full because they are copyright of the ACCA and so we are not allowed to publish them. I have all past exam questions (and the BPP Revision Kit), so you only need to tell me which question.

    I do not know where you are getting $186,400 from. The factory costs are all costs apart from materials. Here the costs excluding labour and materials is $106,400 (per the question), and so we need to add to this the labour costs, which are (3 x $40,000) + (2 x $28,000) + (2 x $12,000) = $200,000 per year.
    So the total factory cost is $306,400 per year.

    The bottleneck activity is the senior stylists time, which is 7,200 hours.
    Therefore the cost per factory hour is 306,400/7,200 = $42.56.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • verweijlisa on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Salexy on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • omerbasheer on The Statement of Financial Position and Income Statement (part d)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in