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.