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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Qn 73 n 75

- This topic has 2 replies, 2 voices, and was last updated 3 years ago by John Moffat.

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- February 1, 2021 at 8:09 am #608731
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 explainFebruary 1, 2021 at 3:00 pm #608757Q73: 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%

February 1, 2021 at 3:04 pm #608759Q75: 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 = 1.20It is the same workings for the other two products.

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