You have been engaged with PQR Ltd, a manufacturing company to
provide advice on the most profitable production plan for the
company. The company makes three products Alpha, Beta and Gamma and
the appropriate data are as follows for the year 2022: Cost per
unit and selling price Alpha Beta Gamma RM RM RM Selling Price
45.00 50.00 38.00 Direct Material Cost 12.5 15 7.5 Direct Labour
Cost (RM4 per direct labour hour) 8 6 8 Additionnal Information 1.
Variable overheads are absorbed at RM6 per direct labour hour 2.
Fixed overheads total RM24,900. 3. Budgeted volume per annnum
Products Units Alpha 1,200 units Beta 1,800 units Gamma 1,500 units
There is a constraint on the direct labour hours, which is limited
to 6,500 direct labour hours. The sales director has already
accepted an order for 100 ALPHA, 200 BETA and 400 GAMMA which must
be supplied. These quantities are included in the market demand
estimates above. a. Identify any shortfall for the year 2022 based
on the above information. (2 marks) b. Determine the production
units of each product in order to maximise profit. (15 marks) 4 c.
Calculate the maximum profit based on your answer obtained in (b)
above. (3 marks) d. Critically evaluate whether limiting factor and
throughput accounting are the same thing
You have been engaged with PQR Ltd, a manufacturing company to provide advice on the most profitable production plan for
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