2.

The following cost details relate to a single product manufactured by Company Y.

	Per unit
Direct materials (5 kg)	30
Direct labour (11 hours)	77
Production overheads	45

During the next period direct labour will be restricted to 340,000 hours and only 140,000 kg of material will be available. Demand is expected to be 30,000 units.

What will be the limiting factor for the next period?

A)	Labour only

B)	Both material and labour

C)	Material only

D)	Neither material nor labour