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3 [30 marks] The Warren company manufactures three products at its Leicester factory. Karen, the managing director, is concerned that the way the products are
3 [30 marks] The Warren company manufactures three products at its Leicester factory. Karen, the managing director, is concerned that the way the products are costed is misleading as to whether or not they are profitable. As the products are independent there is an option to cease the product of a product if it is beneficial to the company. The cost information is shown below: Hours per unit Unit Assembly Machine {:[" Material per "],[" unit "]:} Volume Product Daisy 1 2 120 780 Product Graham 3 1 95 1,250 Product Billy 2 1 55 9,000 Direct labour hour cost is 17.50 per hour and production overheads are absorbed in the assembly department based on labour hours and
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