Question: need it faster ABMCHINA INFORMATION FOR CONTROL & DECISION MAKING Question 2 JESS Sdn. Bhd, is a company that manufactures specialist touch pens. JESS manufactures

need it faster

need it faster ABMCHINA INFORMATION FOR CONTROL & DECISION MAKING Question 2

ABMCHINA INFORMATION FOR CONTROL & DECISION MAKING Question 2 JESS Sdn. Bhd, is a company that manufactures specialist touch pens. JESS manufactures three products, ACE, BEE and CII using the same machinery. The standard cost per unit of the three products are as shown below: ACE (RM) BEE(RM) CHI(RM) Selling price 1,500 800 1,200 Direct materials 450 330 510 Conversion cost 210 180 375 Fixed overheads 80 60 55 Profit/(loss) 760 230 260 The sales manager has prepared the budgeted sales for the month of June for the products as follows: ACE BEE CII Sales in units 6.600 8,800 5,600 Machine hours per unit 10 15 13 After studying the availability of machine hours used in the production, the production manager has informed that the above sales demand for the month of June 2021 cannot be met due to the maximum capacity of machine hours of only 200,000 hours. Required: (a) Compute the shortfalls in machine hours if JESS San. Bhd. were to utilise 100% production capacity (4 marks) (b) Determine the optimum production plan that maximises profit for the next period. (1 1 marks) (c) Calculate the maximum profit under the optimum production plan. (4 marks) (d) Explain THREE (3) ways to eliminate the limiting factor of machine hours faced by JESS Sdn. Bhd. (6 marks) [Total: 25 marks]

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