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I didn’t understand how to find the efficiency of bottleneck process for qn 73…
N for qn 75 how to find the limiting factory hrs as for TPAR it’s return on factory hrs ÷ conversation cost per factory hrs….
They haven’t provided with limiting factory hrs for each unit…
While bpp I didn’t understand ..
Plz explainQ73: We know that the bottleneck process is expected to be working for 8 hours a day.
We know how long each product takes to make – X takes 1/1,200 hours; Y takes 1/1,500 hours; Y takes 1/600 hours.
Therefore we can calculate how many hours the actual production should take:
(6,000 x 1/1,200) + (4,500 x 1/1,500) + (1,200 x 1/600) = 10 hours.
Therefore the efficiency of the process is 10/8 = 125%
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