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 explain
Ask the Tutor ACCA PM
Qn 73 n 75
5y ago#1Q73: 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%
5y ago#2Q75: The factory costs are $80,000 per hour.
The throughput contribution per hour for X is 1,200 x 80 = $96,000
Therefore the TPAR for X is 96,000 / 80,000 = 1.20
It is the same workings for the other two products.
Sign in to reply to this topic.