The cost card per unit is as follows
$
Materials 9
Labour(1hour) 6
Other production costs 8
The selling price is $30per unit and each unit requires 6minutes of machine time.Machine time is the bottelneck resource.
What is the return/factory hour in throughput accounting environment
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Is the answer $210
how do i calculate it
11y ago#3The throughput is 30 - 9 = 21 per unit.
The hours per unit are 6/60 = 0.1 hours
So the return per factory hour (or throughput per hour) is 21 / 0.1 = $210
(I suggest that you watch the free lecture on throughput accounting!)
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