JJ Ltd manufactures three products: W, X and Y. The products use a series of different...

 

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JJ Ltd manufactures three products: W, X and Y. The products use a series of different machines but there is a common machine that is a bottleneck. The standard selling price and standard cost per unit for each product for the forthcoming period are as follows: W X Y £ £ £ Selling price 200 150 150 Cost Direct materials 41 20 30 Labour 30 20 36 Overheads 60 40 50 Profit 69 70 34 Bottleneck machine - minutes per unit 9 10 7 40% of the overhead cost is classified as variable Using a throughput accounting approach, what would be the ranking of the products for best use of the bottleneck? JJ Ltd manufactures three products: W, X and Y. The products use a series of different machines but there is a common machine that is a bottleneck. The standard selling price and standard cost per unit for each product for the forthcoming period are as follows: W X Y £ £ £ Selling price 200 150 150 Cost Direct materials 41 20 30 Labour 30 20 36 Overheads 60 40 50 Profit 69 70 34 Bottleneck machine - minutes per unit 9 10 7 40% of the overhead cost is classified as variable Using a throughput accounting approach, what would be the ranking of the products for best use of the bottleneck?

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Throughout accounting approach The ranking of th... View the full answer