Management accounting: Budgeting Practice Paper Question 5e
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KAF
Registered Posts: 32
Hi,
Could someone help me to work out the without overtime maximum sales volume and the with unlimited overtime section please?
Could someone help me to work out the without overtime maximum sales volume and the with unlimited overtime section please?
0
Comments
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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
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sorry i just realised i missed off the top bit.
I've attached the full question now.
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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 - Passed Sep 2021
F9 - Passed June 2021
SBL -
SBR - Passed Mar 22
ATX - Passed Dec 21
APM - Passed June 220
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