Pcr June 06 - 1.2 Limiting Factor

Bex Registered Posts: 33 Regular contributor ⭐
I am hoping that somebody can help me on this one please -

Section 1.2, I have correctly calculated the shortfalls and the limiting factor. However, part b asks for the revised production budget. I have looked at the AAT answers and cannot understand where they have got the 1400/2000 and the 600/2000 for the Sigmas and Thetas.

I understand the 320 x part, as this is the labour shortfall.

Hopefully this makes sense to someone and they can help me ready for tomorrow.

Many thanks in advance




  • LJ1
    LJ1 Registered Posts: 27 Regular contributor ⭐
    Hi Bex,

    I worked it out like this:

    320 (Labour Hrs short)/Increased Demand(1400+600 = 2000) = 0.16 HRS

    0.16hrs x 1400 = 224 hrs short x 7 (units that can be made in an hr) = 1568
    0.16hrs x 600 = 96 hrs x 4 (units that can be made in an hr) = 384

    Hope that helps and hasn't confused matters!
  • Bex
    Bex Registered Posts: 33 Regular contributor ⭐

    I knew leaving it for a few hours and taking a break was a good move.

    Your answer makes sense and so does theirs now! :lol:

    The 1400 is the increased Sigmas and the 600 is the increased Thetas, divided by 2000 (the total of the increases) x 320 labour shortfall - it has all clicked in to place now!

    Thank you lots


    xx :thumbup:
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