Budget

lindas1967

Hi I am 2 weeks away from my exam budget and I going through question after question and one question I am stuck with
5630 units product are to be manufactured next week
Each unit takes 2.5 minutes produce
200 production labour hours are available
Any additional requirement must be sub-contracted
How do you work this out please
Thanks linda

SandyHood

Linda

200 production labour hours are available
each unit takes 2.5 minutes produce

So we can make 24 units per hour. [60 minutes in an hour/2.5 minutes per unit]
and 4800 units in 200 hours

But we need 5630 units which is 830 more than we can make
So must sub-contract the production of 830 units.

I hope that helps

lindas1967

Hi thanks it as just answering as many question as I can ready for the exam