Dwyran Ltd. manufactures a number of different products and has recently employed Ruth Benton as its management accountant. Ruth is currently looking at the various products and processes within Dwyran Ltd. to increase profitability, as a measure to try to avoid redundancies.
Ruth has identified 4 areas of that she would like to look at first and she has asked you to provide her with the following information.
Dwyran Ltd. manufacture the Newborough which it sells for £40 a unit. The direct material cost is £8 per unit. Other factory costs are £60,000 each month. The bottleneck factor of the production is the assembly of the unit, which is a labour intensive process. There are 20,000 labour hours available in assembly each month. Each unit of the Newborough takes 2 hours to assemble.
Calculate the Newborough’s budgeted rate per factory hour and through put ratio for the month.

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