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6. A company has recently adopted throughput accounting as a performance measuring tool. Its results for the last month are shown below.
Units produced
1,150
Units sold
800
Materials purchased 900 kg costing $13,000
Opening material inventory used 450 kg costing $7,250
Labour costs
$6,900
Overheads
$4.650
Sales price
$35
There was no openling inventory of finished goods or closing inventory of materials.
What is the throughput accounting ratio for this product?
A. 0
B.
0.80
C.
1.30
D. 1.50How to determine the bottleneck resource sir to caluclation factory cost per hour ??
can you do clarify this oneBottleneck resource is typically identified as the resource that has the least capacity or the highest demand relative to its available capacity.
Therefore you need to analyse the production process to see which resource is it
But the information you have sent is not clear……
if machine time is the limiting factor, you would calculate the factory cost based on the machine hours available and the costs associated with that resource. So it’s done as…….
Throughput = SR-Mat………28000-15000=13000
Factory costs = 11550
TPAR = 15000/11550 = 1.30
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