Calculate the Return Per Factory Hour

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Problem - Throughput Accounting is a modern management accounting technique that offers an alternative view to the more traditional cost accounting. It is all about identifying the constraint or limiting factor in the production process and exploiting it to maximise profit. It allows management to focus efforts to make the best possible use of the limitation. Pupkwitz sell 500 units of per day at N$ 25 per unit. The direct materials cost per unit is N$10, other factory costs per day amounts to N$6 000 while the number of hours of bottleneck used per day is 8. Calculate the Return Per Factory Hour?

Reference no: EM132945134

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