Help! Unit 6, past paper

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!

Comments

  • timgriff
    timgriff Registered Posts: 55 ? ? ?
    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
    emma89 Registered Posts: 27 ? ? ?
    Thanks that does help. Good luck for your exam!
  • timgriff
    timgriff Registered Posts: 55 ? ? ?
    Cheers and you, roll on 5pm tomorrow!
    Tim
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