Pcr Dec 2009

Terdoo

Can someone help with task 1.3 of pcr dec 2009, on the labour hours
Q1 Q2 Q3 Q4
Nomal time
50600 50600 50600 50600

Required hour hours? 20hr/k

45000, 38264, 86053, 50685 in all the quarters

I can' t figure out how they came up with the answers?


Thanks in advance

Rinske

The easy answer is, use the total production required, divide this by 1000 times 20. (1000 rolls take 20 hours to produce).

Total production:
Q1: 2,250,000 / 1000 * 20 = 45,000
Q2: 1,913,158 / 1000 * 20 = 38,264 (38,263.16)
Q3: 4,302,632 / 1000 * 20 = 86,053 (86,052.64)
Q4: 2,534,211 / 1000 * 20 = 50,685 (50,684.22)

The turnover per quarter is 2,587,500. This is before adding or removing the seasonal variations. Adjust this figure for the seasonal variations:

Sales
2,587,500 - 550,000 = 2,037,500
This is what you expect to sell in this quarter.
To find the production figure add the closing stock, minus the opening stock, as you already got the opening stock as finished goods ready and you want to produce so many more to come to your closing stock:

2,037,500
+250,000
-150,000
= 2,137,500

This is the number of finished goods you want to produce in this quarter.

Wastage is 5% so the 2,137,500 above is actually 95% of your production.

2,137,500 / 95 * 100 = 2,250,000

2,250,000 / 1000 * 20 = 45,000

The normal hours are 50,600, but you don't need that many hours to produce this number of rolls, so provided the employees work on an hourly base, you would just send them home, so you only have to pay for the hours they worked.

Does that make sense?

Cheers,
Rinske