Help! Unit 6, past paper

emma89

hi, Im trying to do the ECR Dec 05 past paper and i cant figure out how 0.002 machine hours per unit and 0.43 contribution per unit can equal £215. Been doing this all day so my brain has given up. Please can somebody help its my exam on monday!

timgriff

Hi, if you divide 0.43 (the contribution per unit made) by 0.002 (the no. of machine hours to make one unit) = £215 contribution per machine hour.

So in other words each unit produced generates 0.43 in contribution and if the machine were to run for one hour it would generate £215. In terms of units this means 215/0.43 = 500 units that are made in 1 hour. Hope that helps....

Know what you mean about your head hurting - i've just been doing process accounts!

emma89

Thanks that does help. Good luck for your exam!

timgriff

Cheers and you, roll on 5pm tomorrow!
Tim