Help with ECR June 2008 paper

Registered Posts: 17 Dedicated contributor ? ? ?
Can anyone help with Section 2 Task 2.4 Contribution/unit price is £1.03
How do you work out the material hours/unit, and Contribution/machine hour£

I got the answer of 0.20 and £5.15 but how?

Many Thanks

• Registered Posts: 721 ? ? ?
Take machine hours per units made and sold, divide hours into number of units, that gives you no. of hours per uint.

• Registered Posts: 17 Dedicated contributor ? ? ?
Thanks, I haven't touched this paper since 2006 when I passed the first section failed the 2nd, December exam will be 3rd time lucky.
• Registered Posts: 3 New contributor ?
Hi,

I'm stuck on the same section - it may seem really stupid, but how you work out how many machine hours to allocate to each product? I've been staring at it for ages now.....I know the answers are 30,000 for Product A and 40,000 for Product B, but how do you get there?Any help would be really appreciated.
• Registered Posts: 218 ? ? ?
Product..................................A........B
Contribution/unit (£)...............1.03.....0.62
Machine hours/unit...............£0.20.....0.08
Contribution/machine hr. (£)....5.15.....7.75

The above is from the AAT June 08 Model Answer

Shown below is the understanding and workings

Unit A takes 0.2 Machine Hour to make. So many units of Unit A can be made in 1 Machine hour

1 divide by 0.2 = 5 units

Contribution per unit A = 1.03 therefore for 5 unit = 1.03 times 5 = £5.15 per machine hour

Unit B takes 0.08 Machine Hour to make. So many units of Unit B can be made in 1 Machine hour

1 divide by 0.08 = 12.5 units

Contribution per unit A = 0.62 therefore for 12.5 unit = 0.62 times 12.5 = £7.75 per machine hour
• Registered Posts: 218 ? ? ?
• Registered Posts: 3 New contributor ?
Thanks very much Visha
• Registered Posts: 17 Dedicated contributor ? ? ?
Take machine hours per units made and sold, divide hours into number of units, that gives you no. of hours per uint.