Data for a factory
$\begin{array}{ll}
\text { Total factory cost } & £ 10,000 \
\text { Total time au ailable on key resource (hours) } & 2,500 \
\text { Contribution per unit product A } & £ 34.00 \
\text { Contribution per unit product B } & £ 30.00 \
\text { Contribution per unit product C } & £ 22.00 \
\text { Contribution per unit product D } & £ 20.00 \
\text { Hours required product A } & 12.0 \
\text { Hours required product B } & 6.0 \
\text { Hours required product C } & 6.0 \
\text { Hours required product D } & 8.0
\end{array}$

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What is the TA ratio for product D

Question

Data for a factory
$\begin{array}{ll}
\text { Total factory cost } & £ 10,000 \
\text { Total time au ailable on key resource (hours) } & 2,500 \
\text { Contribution per unit product A } & £ 34.00 \
\text { Contribution per unit product B } & £ 30.00 \
\text { Contribution per unit product C } & £ 22.00 \
\text { Contribution per unit product D } & £ 20.00 \
\text { Hours required product A } & 12.0 \
\text { Hours required product B } & 6.0 \
\text { Hours required product C } & 6.0 \
\text { Hours required product D } & 8.0
\end{array}$

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What is the TA ratio for product D

Quizplus · Accepted Answer

The TA ratio (Throughput Accounting ratio) is calculated as Contribution per unit divided by Hours required per unit. For product D, it is £20.00 / 8.0 hours = £2.50 per hour. However, the TA ratio is typically expressed as a ratio of contribution to time, which is £20.00 / 8.0 = £2.50, and then divided by the cost per hour (£10,000 / 2,500 hours = £4.00 per hour), resulting in £2.50 / £4.00 = 0.625.

Data for a Factory - What Is the TA Ratio for Product D

Data for a Factory -
What Is the TA Ratio for Product D