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  • 1.  THROUGHPUT MARGIN - QUICK RESPONSE WILL BE HIGHLY APPRECIATED

    Posted 22 days ago
    Dear Friends,

    can you please help me in solving this Throughput Margin question?

    Regards

    A manufacturer produces a single product that sells for $150 per unit. The product is processed through the Cutting and Finishing Departments. Additional data for these departments are as follows:
    Cutting
    Finishing

    Annual capacity (36,000 direct labor hours available in each department)

    180,000 units
    135,000 units

    Current production rate (annualized)

    108,000 units
    108,000 units

    Fixed manufacturing overhead

    $1,296,000
    $1,944,000

    Fixed selling and administrative expense

    864,000
    1,296,000

    Direct materials cost per unit

    45
    15
    The current production rate is the budgeted rate for the entire year. Direct labor employees earn $20 per hour, and the company has a "no layoff" period in effect. What is the amount of the throughput contribution per unit as computed using the theory of constraints?

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    TIMUCIN ONER
    Director/Manager
    ANTALYA
    Turkey
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  • 2.  RE: THROUGHPUT MARGIN - QUICK RESPONSE WILL BE HIGHLY APPRECIATED

    Posted 21 days ago
    Throughput contribution = sales - dm
    150 - ( 45+15)
    150 - 60 = 90

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    UNNI C.S
    Accountant
    Dubai
    United Arab Emirates
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