Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Budgeting

Production Capacity

sophie_612sophie_612 LondonRegistered Posts: 131
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

Comments

  • NorvydasNorvydas DevonMAAT Posts: 268
    @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.
    Kind Regards,

    Norvydas Valavicius.
  • sophie_612sophie_612 LondonRegistered Posts: 131
    edited April 2019
    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.
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