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General Accounting Discussions: Contribution per hour

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    • CommentAuthoramajeed
    • CommentTimeJul 23rd 2008
     
    I am working in a flexible packaging manufacturing field. Our manufacturing process is going through 3 process. 1-Printing, 2- punching, and 3-forming (finished goods) through different machines by different time. Last month my General Manager asks me to prepare a costing sheet for a specific order. When I send it with 45% contribution over material (COM), then he asks me what is the net contribution per hour? So, being the processes is going through 3 stages how I can calculate contribution per hour? Is it possible?

    Regards.

    C.K
    • CommentAuthorshamili
    • CommentTimeJul 25th 2008
     
    In this case you have to identify the key limiting factor for you process.

    .45 is COM.

    On an average work for 8hrs /day.
    so you can calculate in this way and let me know if this information is useful.

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