Mathematics · Throughput Accounting
Skye Limited operates two sequential processes with the following capacities: Process A: 8 machines at 90% capacity, each producing 6 units/hour. Process B: 6 machines at 85% capacity, each producing 9 units/hour. The company produces 'Cloud'. Its standard selling price is $20 per unit, but a 15% price discount is applied. Material cost is $5 per unit, and direct labor cost is twice the material cost. A unit of 'Cloud' takes 0.2 hours in Process A and 0.3 hours in Process B. What is the throughput per hour of the bottleneck resource for 'Cloud'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$40.00
- 2$64.20
- 3$54.60
- 4$60.00✓
Correct answer
$60.00
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