Darren Bhd produces three products A, B and C. The unit cost and selling prices are...
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Darren Bhd produces three products A, B and C. The unit cost and selling prices are as shown below: Product Selling price Direct material Direct labour Variable production overhead Fixed production overhead per month RM28,000 Product A, B and C require 3 hours, 2 hours and 1 hour to produce respectively. Owing to capacity restrictions, total labour hours will be limited to 15,000 hours in the following period. The demand for the coming month is 3,000 units for each of the products. Required: (a) (b) (c) A RM 35 12 10 7 B RM 2875 C RM 17 7- 5% 2 Calculate the short falls in the labour hours. (6 marks) Prepare the optimum production plan if the labour hours are restricted as above. (10 marks) Calculate the profits based on the optimum production plan as (b) above. (4 marks) Darren Bhd produces three products A, B and C. The unit cost and selling prices are as shown below: Product Selling price Direct material Direct labour Variable production overhead Fixed production overhead per month RM28,000 Product A, B and C require 3 hours, 2 hours and 1 hour to produce respectively. Owing to capacity restrictions, total labour hours will be limited to 15,000 hours in the following period. The demand for the coming month is 3,000 units for each of the products. Required: (a) (b) (c) A RM 35 12 10 7 B RM 2875 C RM 17 7- 5% 2 Calculate the short falls in the labour hours. (6 marks) Prepare the optimum production plan if the labour hours are restricted as above. (10 marks) Calculate the profits based on the optimum production plan as (b) above. (4 marks)
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Answer rating: 100% (QA)
a Calculate the Shortfalls in Labor Hours To calculate the shortfalls in labor hours we need to determine the total labor hours required to produce th... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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