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A company manufactures a product which requires four hours per unit of machine time Machine time is a bottleneck

Question

A company manufactures a product which requires four hours per unit of machine time. Machine time is a bottleneck

resource as there are only ten machines which are available for 12 hours per day, five days per week. The product has selling price of $ 130 per unit, direct materials costs of $50 per unit, labour costs of $40 per unit and factory overhead costs of $20 per unit. These costs are based on weekly production and sales of 150 units.

What is the throughput accounting ratio?

A) 1.33

B) 2.00

C) 0.75

D) 0.31

Managerial Accounting