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Question 2 You heve bsnnewith Acme mamafacturing Compuey to provide wiviee on the most profitable...

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Accounting

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Question 2 You heve bsnnewith Acme mamafacturing Compuey to provide wiviee on the most profitable procduction plan for the company The company makes three productn X, Y and Z and the nppropriate data are na follows Cost per unit RM 15.00 RM 30.00 RM Direct Material 45.00 Direct Labour Cost 45.00 30.00 Process B Process C Variable Overhead Cost Fixed Overhead Cost 36,00 15.00 18.00 30.00 30.00 18.00 9.00 20.00 36.00 50.00 20.00 211.00 260.00 Total Cost Selling Price 134.00 150.00 142.00 190.00 5,000 6,000 Budgeted volume per annum 4,000 There is a constraint on the direct labour hou direct labour hours. The direct labour rate per hour for Process A is rs for Process A which is limited to 160,000 RM3.00 The sales director has already a ccepted an order for 1000 X, 2000 Y and 2000 Z which must be supplied. These quantities are included in the market demand estimates above Required: (a) Calculate the shortfall of Process A Direct Labour hours for the year 2018. 5 marks) Determine the production units of each product in order to maximise profit. (10 marks) Calculate the maximum profit based on your answer obtained in (b) above. 5 marks) (Total: 20 marks)

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