Production Capacity

sophie_612

Hi,

Please can someone explain how they worked this out, I understand how they got 750 for materials but the others I cannot work out.

Thanks
Sophie

Norvydas

@sophie_612

Direct Labor without overtime; 60/45 x 450 hrs. 60 Represents minutes in an hour and 45 represents how many minutes it takes to produce 1 unit.

Same workings for Machine Hours.

sophie_612

Norvydas said:

@sophie_612

Direct Labor without overtime; 60/45 x 450 hrs. 60 Represents minutes in an hour and 45 represents how many minutes it takes to produce 1 unit.

Same workings for Machine Hours.

@Norvydas
thank you so much for your help.