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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput accounting
QUESTION 2
MUSHAMBANZOU Ltd produces three products using three different machines. The following information is available for a product for a period:
Product
Selling price per unit Direct materials Direct labour Overheads
Estimated sale demand (unit)
Machine hours required per unit: Machine 1 Machine 2 Machine 3
X Y ($) ($) 20 15
8 5
5 3 2 1
310 280
4 2 4 3 3 1
Z ($) 10
4 2 1
250
1
2 3
Machine capacity is limited to 2,000 hours for each machine.
Page 3 of 6
Total assembly labour hours
19,000 23,000
Required:
(a) Calculate throughput accounting ratio and rank the products.
How do I identify a bottleneck here
I am sorry but I cannot follow the figures the way that they have appeared.
Calculate how many hours would be needed on each machine to be able to produce the expected demand and then see which one is causing the bottleneck.