Hi all,
It's late in the day I know but I'm stuck on the following question:
A Company Makes two products x and y for which the following details are available
x y
Selling price 50 32
Material 10 6
Direct Labour 20 15
Assembly time 20 mins 15 mins
Maximum demand 1500 units 1000 units
Total assembly time is limited to 600 hours
Using throughput accounting, how many units of y should be produced?
Would really appreciate any help
Thank You
Aaron
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mock question help f5
X: S.P $50 less Mat. $10 = $40 Throughtput p.u / 20mins = $2 return per factory hr
Y: S.P $32 less Mat. $6 = $26 Throughput p.u / 15mins = $1.73 return per factory hr
since x gives higher return we produce x first.
Available Assembly Time = 600hrs x 60mins = 36000 mins
X: 1500u * 20mins = 30000 mins
Y: 400u * 15mins = 6000 mins (remaining time)
hope this helps. goodluck
11y ago#3Sasha: although your final answer is correct (and that is all the matters here). If you were asked in a different question for the throughput per hour, then what you have calculated is throughput per minute. The throughput per hour is 60 times the figures that you have :-)
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