X 0 - 2 Word - (caso very b) AMA Spring 2020 Assignment 2 (1) ALRAYAN ALI RASHID AL QATBI : | " : 1. 56 Jaz Company is producing three types of products, J1 J2 and 13 All the products are produced in three processes Process 1, Process2 and Process 3. Company is facing a tough price competition in the market it operates. In the production process, the product first goes through process then in process 2 and finally completed in process 3. The total factory time available for the year is 22,500 Hours. One hour of labour is needed for each hour of factory time. Labour cost per hour is OMR 8. The following data is available about each process Product Processing time in hour per unit 13 0.75 0.50 0.30 Process 1 0.75 Process 2 0.30 0.50 Process 3 0.50 0.30 The selling price and cost details are as below: J1 J2 Material cost per unit (OMR) 6 5 Selling Price per unit (OMR) 100 120 33 3.6 50 Fixed cost for the year excluding labour cost is OMR 800,000 108% +_ _- ES E ES 118 6 2:49 PM 0 AMIA Spring 2020 Assignment ( ) - word (1) 2 ALRAYAN ALI RASHID AL QATBI | X : Material cost per unit (OMR) 6 5 3.6 Selling Irice per unit OMR) 100 120 50 Fixed cost for the year excluding labour cost is OMR 800,000 Required: a) Using the above scenario of Jaz Company showing the working clearly, identify which process is bottleneck process and explain why this process is described as bottleneck. 2 Marks b) Calculate TPAR (Throughput accounting ratio) for each product JI, J2 and J3 and rank the products. 6 Marks c) Justify your answer by interpreting each Ratio. 2 Marks + 1 - 118 6 100 | ' E E w e Ta Pa 29 PM | * 29 / 2010