Castries Ltd has been informed that supplies of material are not limited, but only 3395 direct labour hours are available. All the other information is as in exercise 6. 

Required

Prepare a revised production budget that will produce the most profit from the available direct labour hours.

Data from Exercises 6

Castries Ltd makes three products: Gimie, Gros and Petit. The budgeted production for three months is as follows.

Direct material costs $2 per litre. Direct labour is paid at $10 per hour. Fixed expenses are $10 000. Castries Ltd has been informed that only 10 575 litres of material are available. 

Transcribed Image Text:

No. of units Selling price per unit Direct material per unit (litres) Direct labour per unit (hours) Gimie 1000 $14 2.5 0.5 Gros 2000 $25 3.25 1.4 Petit 800 $20 4 0.6