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Throughput accounting

Forums › ACCA Forums › ACCA PM Performance Management Forums › Throughput accounting

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by shariarmohammad.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 22, 2017 at 8:20 am #408310
    Tom
    Member
    • Topics: 15
    • Replies: 15
    • ☆

    I cam across this question and am struggling to see where the answers came from. Can anyone help explain the steps to getting the below answers?

    Firstly the answers:
    Assembly hours for maximum production: 143.75
    Quality Control hours for Max production: 178.33
    Packaging Hours for maximum production: 234.17

    Sales price per unit:
    Alpha: 2
    Beta: 2.25
    Gamma: 1.75

    Direct Materials cost P.U:
    Alpha: .5
    Beta: .81
    Gamma: .35

    Direct Labour cost P.U:
    Alpha: .3
    Beta: .6
    Gamma: .5

    Machine time per unit:
    (Assembly in minutes)
    Alpha: 2
    Beta: 3
    Gamma: 2.5

    (Quality control in minutes)
    Alpha: 3
    Beta: 4
    Gamma: 2

    (Packaging in minutes)
    Alpha: 4
    Beta: 5
    Gamma: 3

    Weekly Sales demand
    Alpha: 1,000 Units
    Beta: 1,500 Units
    Gamma: 850 Units

    Operating expenses, including labor are $4,000
    The Maximum hours for the machine are:
    150 hours (Assembly)
    170 hours (Quality Control)
    250 hours (Packaging)

    Can you help explain the steps to resolving this as I need these answers to calculate the ratio later on?

    Thanks in advance for your help,

    Tom

    October 2, 2017 at 12:44 am #409195
    shariarmohammad
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    this seems to b a question from the kaplan text book, i did it a few days back. Although a few areas did seem confusing at first but i figured it out eventually. you can ask me where you have doubts, i will try to help you out

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    Posts
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