=+5. Megacorp pIe is a large multidivisional company operating primarily within the UK. One of its divisions,

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=+5. Megacorp pIe is a large multidivisional company operating primarily within the UK. One of its divisions, Aira, operates a small production plant solely devoted to the manufacture of three materials, Ingots, Jars and Knuts. All the output of the plant is transferred to a factory opera ted by the Blackside division of Megacorp pIe where the three products are used as the major raw materials in the production of two products, Lemons and Mavericks. These products are then sold externally.

In the Aira division's production plant, three main production operations are carried out, namely Forging, Grinding and Heating. These take place using different types of equipment, each of limited capacity. To produce one unit of each of the three products requires different amounts of time in the three processes, as follows:

To make one unit of Ingots Jars Knuts Daily availability (hours)

Time required in haurs far each production process Farging Grinding Heating 5 1 2 1 2 2 1 3 2 810 605 630

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Accounting For Management Control

ISBN: 9780412374807

2nd Edition

Authors: David Otley And Kenneth Merchant Clive Emmanuel

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