Quality Bhd made and sold three products: SUN, MOON and STAR. Information regarding the products is...

 

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Quality Bhd made and sold three products: SUN, MOON and STAR. Information regarding the products is given as follows: Direct material usage (kg) Direct labor hours Variable overhead Budgeted sales: Sales revenue Selling price per unit Required: SUN 2 a) b) 3 RM56 c) d) RM500,000 RM200 MOON 2.5 3 RM42 RM600,000 RM200 STAR 3 Currently the material WIND can be bought at RM15.00 per kg and it is estimated to remain constant over the next period. Direct labor will be paid RM8.00 per hour worked. The fixed production overheads for the period are estimated to be RM295,000 and fixed selling and administration overheads are RM277,000. 5 RM65 The current supplier has informed the company that they are unable to supply the material in the next period due to some problem. Therefore, the purchasing manager has conducted some survey and found that the material can be obtained from the different supplier where supplier A can supply 7,000 kg, supply B 6,000 kg and supply C 4,000 kg. RM600,000 RM300 Determine the shortage of the material. Advice the company on the most profitable mix of product to be produced based on the availability of the material. (show all the working) How much is the net profit of the company if the proposal in (b) is carried out? List four (4) disadvantages of determining the products to be produced based on ranking. Quality Bhd made and sold three products: SUN, MOON and STAR. Information regarding the products is given as follows: Direct material usage (kg) Direct labor hours Variable overhead Budgeted sales: Sales revenue Selling price per unit Required: SUN 2 a) b) 3 RM56 c) d) RM500,000 RM200 MOON 2.5 3 RM42 RM600,000 RM200 STAR 3 Currently the material WIND can be bought at RM15.00 per kg and it is estimated to remain constant over the next period. Direct labor will be paid RM8.00 per hour worked. The fixed production overheads for the period are estimated to be RM295,000 and fixed selling and administration overheads are RM277,000. 5 RM65 The current supplier has informed the company that they are unable to supply the material in the next period due to some problem. Therefore, the purchasing manager has conducted some survey and found that the material can be obtained from the different supplier where supplier A can supply 7,000 kg, supply B 6,000 kg and supply C 4,000 kg. RM600,000 RM300 Determine the shortage of the material. Advice the company on the most profitable mix of product to be produced based on the availability of the material. (show all the working) How much is the net profit of the company if the proposal in (b) is carried out? List four (4) disadvantages of determining the products to be produced based on ranking.

Answer rating: 100% (QA)

a To determine the shortage of the material we need to compare the total material usage of all three products SUN MOON and STAR with the available supply from the different suppliers Total material us... View the full answer