Lubbly Fashh Sdn Bhd manufacture and sells three designs of blouse. The management accountant has forecasted...

 

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Lubbly Fashh Sdn Bhd manufacture and sells three designs of blouse. The management accountant has forecasted the following production and sales data for the month of May 2020. Design Demand (units) Selling price Variable costs: Direct materail: Crepe fabric Satin fabric Direct labour Variable overhead Anggun 5,000 RM per unit 120 45 - 30 15 Juwita 4,000 RM per unit 140 50 35 10 Beauty 3,000 RM per unit 80 30 15 10 Additional information: 1. Direct material used fro Anggun and Juwita is only Crepe fabric while Beauty uses only satin fabric. The amount of direct materials available for Crepe fabric is 20,000 meters while satin fabric is 10,000 meters. 2. The Crepe fabric will be purchased at RM25 per meter while satin fabric will be purchased at RM15 per meter. 3. Total direct labour hours available are 33,000 hours. The direct labours will be paid RM10 per hour worked. 4. Total fixed cost is expected to be RM150,000. Required: a. Determine whether direct materials or direct labour hours will be the limiting factor for the month of May 2020. b. Suggets to the management Lubbly Fashh Sdn Bhd the most profitable production mix of the design of the blouse under the constraint in a above. c. Give TWO (2) examples if factor that could be limiting factor in a production. Lubbly Fashh Sdn Bhd manufacture and sells three designs of blouse. The management accountant has forecasted the following production and sales data for the month of May 2020. Design Demand (units) Selling price Variable costs: Direct materail: Crepe fabric Satin fabric Direct labour Variable overhead Anggun 5,000 RM per unit 120 45 - 30 15 Juwita 4,000 RM per unit 140 50 35 10 Beauty 3,000 RM per unit 80 30 15 10 Additional information: 1. Direct material used fro Anggun and Juwita is only Crepe fabric while Beauty uses only satin fabric. The amount of direct materials available for Crepe fabric is 20,000 meters while satin fabric is 10,000 meters. 2. The Crepe fabric will be purchased at RM25 per meter while satin fabric will be purchased at RM15 per meter. 3. Total direct labour hours available are 33,000 hours. The direct labours will be paid RM10 per hour worked. 4. Total fixed cost is expected to be RM150,000. Required: a. Determine whether direct materials or direct labour hours will be the limiting factor for the month of May 2020. b. Suggets to the management Lubbly Fashh Sdn Bhd the most profitable production mix of the design of the blouse under the constraint in a above. c. Give TWO (2) examples if factor that could be limiting factor in a production.