PCR Dec 08 1.3 b

joerd84

I'm really stuck on the additional cost of subcontracting in this question. I've worked out part A to be 130,000 tests. Can anybody help?

Thanks

Rinske

Overtime is 13.23 per hour, plus overheads of 1.68 makes the total costs per hour 14.91. 1 test takes 3 minutes, so the costs are 13.23/20 (20 tests per hour)+ 1.68/20 = 0.74 per test.

Additional subcontracting cost is 1.40 so the extra costs are 1.40- 0.74 = 0.66 per test.
130,000 tests makes 85,800 for total extra costs.

The total costs were 4,316,219 so far, so 85,800+ 4,316,219 = 4,402,019 in total.
4,402,019 divided by the number of units (467,500) = 9.42 per unit.

I was highly confused with this part of the exam myself, so worked these out from the given answers. I hope this helps, but personally I just hope something like this won't come up in the next exam!

joerd84

Thanks alot thats a great help.

I'm hoping nothing like the whole of this section 1 comes up on the exam as it's pretty tricky