QTP Co Mar/June 2016

I've had a look at the ACCA model answer and can't see the figures you are asking about. Could you please be a bit more precise about where the figures you quote are?

In part b) the set up & set down for std window equals 1hr. For the bespoke the set up and set down equals 3hrs. Where is it indicated that for std, the set up and dwn occurs twice and for bespoke it occurs thrice. Hope it's clear

There are 9 hours available each day. Standard: 1 production run: Set-up 10 mins, run for 4 hours, set-down 20 mins = 4.5 hours. This can be done twice in a 9 hour day so the total set-up and set-down times would be 2 x (10 mins + 20 mins) = 1 hour. Bespoke: 1 production run: Set-up 15 mins, run for 2 hours, set-down = 45 mins = 3 hours. This can be done three times in a 9 hour day so the total set-up and set-down times would be 3 x (15 mins + 45 mins) = 3 hours. Note the tutorial note that suggests other approaches are OK: ) Tutorial note: The analysis of standard window production might use the current pattern of machine utilisation or it might use a pattern where the production run is uninterrupted. Credit will be given for either and for both.

Thank you sir, its now clear.

Sir I might be wrong. But according to the answer and question as well there is wastage everyday as well. So shudnt we deduct production costs of wastage from daily contribution as well?

I would have. Eg,revenue based on 94.08 and production costs based on 96 (for the standard,window). However the examiner's note indicates he is being very flexible inmhos approach

Oh okay. Thank you.