# Management accounting: Budgeting Practice Paper Question 5e

Registered, AAT Student Posts: 19
Hi,

Could someone help me to work out the without overtime maximum sales volume and the with unlimited overtime section please?

• MAAT Posts: 446
As you've only showed part of the question I can't give you an answer.

For the sales volume you need to look at how long a unit takes and do:
Without overtime the lowest of:
Total Labour hours available/hours for one unit
or
Sales demand

With overtime the lowest of:
Total machine hours available/machine hours for one unit
Total material available/material for one unit
Sales demand

I'm assuming the 2nd constraint would be machine hours but I included all the possibilities.
AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Planned Sep 2021
F9 - Passed June 2021
• Registered, AAT Student Posts: 19
sorry i just realised i missed off the top bit.

I've attached the full question now.

• MAAT Posts: 446
Sufficient materials to manufacture = 4000 (6000/1.5)
No overtime can manufacture = 3500 (700/(12/60)
Sufficient machine time to manufacture = 3900 (130/(2/60)

Without overtime, max vloume = 3,500 (limit is labour hours)
With overtime max volume = 3,800 (limit is the demand)

Just a case of looking at the constraints and picking the lowest. If overtime is allowed then labour is no longer a constraint and the next lowest is the level of demand.
AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Planned Sep 2021
F9 - Passed June 2021