Production Capacity

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sophie_612
sophie_612 Registered Posts: 136 Dedicated contributor 🦉
in Management Accounting: Budgeting
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

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  • Norvydas
    Norvydas Registered Posts: 271 Dedicated contributor 🦉
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    @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_612
    sophie_612 Registered Posts: 136 Dedicated contributor 🦉
    edited April 2019
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    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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