Answer the question Question 4 Company C makes and sells three types of products for which the following information is available: Standard cost and selling prices per unit: 'X' 'Y' Product type 'Z' (RM) (RM) (RM) Direct material 110 153 Direct labour department 1 ww Direct labour department 2.24. 40 55 70 32 44 monm, 16 250 Variable overheads 20 320 28 wwwwww Selling price 458 Fixed costs for the period are RM400,000. Direct labour from department 2, which is highly skilled, is available for 25,000 hours only in a period and is paid RM8 per hour. Both, direct labour from departments 1 and 2 are variable costs. The maximum demand for the product is: 'Z' 2,000 units 3,000 units 1,800 units 'X' 'Y' Required: (a) Calculate the shortage in hours of direct labour from department 2. (b) Calculate the best production plan and the maximum profit that could be achieved from the plan.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 4
Company C makes and sells three types of products for which the following information
is available:
Standard cost and selling prices per unit:
'X'
'Y'
'Z'
(RM)
Product type
(RM)
(RM)
Direct material
110
153
Direct labour department 140
Direct labour department 22d.
Variable overheads
Selling price
55
70
www
32
44
www
20
28
250
320
458
Fixed costs for the period are RM400,000. Direct labour from department 2, which is
highly skilled, is available for 25,000 hours only in a period and is paid RM8 per hour.
Both, direct labour from departments 1 and 2 are variable costs. The maximum demand for
the product is:
'Z'
2,000 units 3,000 units 1,800 units
'X'
'Y'
Required:
(a) Calculate the shortage in hours of direct Jabour from department 2.
www
(b) Calculate the best production plan and the maximum profit that could be achieved
from the plan.
Transcribed Image Text:Answer the question Question 4 Company C makes and sells three types of products for which the following information is available: Standard cost and selling prices per unit: 'X' 'Y' 'Z' (RM) Product type (RM) (RM) Direct material 110 153 Direct labour department 140 Direct labour department 22d. Variable overheads Selling price 55 70 www 32 44 www 20 28 250 320 458 Fixed costs for the period are RM400,000. Direct labour from department 2, which is highly skilled, is available for 25,000 hours only in a period and is paid RM8 per hour. Both, direct labour from departments 1 and 2 are variable costs. The maximum demand for the product is: 'Z' 2,000 units 3,000 units 1,800 units 'X' 'Y' Required: (a) Calculate the shortage in hours of direct Jabour from department 2. www (b) Calculate the best production plan and the maximum profit that could be achieved from the plan.
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