Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Decisions and Control
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Need help in sample assessment task 1.8 a)

hi, can someone help with this task, im just struggling to complete contribution per limiting factor £. and optimal production


  • GeorgiaHGeorgiaH AAT Student Posts: 107
    Hi @Paulasw1 :)

    Contribution per limiting factor is just contribution per unit / direct labour hours. Jackal £7 / 1 (the one comes from the table £6 per hour and the total is £6 meaning 1 hours is used) Hyena is £9 / 2 (because 2 hours have been used)
  • bushrabushra Registered Posts: 25
    Hi, I am struggling to work out q 9 assesment 2

    How do I do this?
  • Paulasw1Paulasw1 Registered Posts: 23
    can someone help in 8 b) also, why is 0 in material and 22500 in labour ?
  • Paulasw1Paulasw1 Registered Posts: 23
    is the figure from 4.5 x 5000 = 22500 ?
  • IrrorateIrrorate Registered Posts: 139
    Materials are limited to 55,000kg. Jackal needs 10,000kg (5,000u x 2kg) & Hyena needs 30,000kg (10,000u x 3kg)

    As such, we have 15,000kg more than required to meet our maximum sales demand, thus no scarce resource and thus we wouldn't pay anything for more material as we don't require it.

    Labour - We have 20,000hrs capacity but require 25,000 to meet demand. We know contribution for Hyena is £4.50/hr so if we pay any more than this then we aren't making any contribution and thus it is pointless. At least if we take the £4.50/hr hit on 5,000hrs we've already contributed £4.50 x 20,000hrs so the remaining 5,000hrs will just break even.

    I think this is correct, someone please correct me if I'm wrong.
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