A company manufactures three products. Selling prices and costs of the three products are as follows. Product A Product B Product C RM per unit RM per unit RM per unit Selling price 4.80 5.50 7.40 Costs : Direct materials 1.40 1.95 2.42 Direct labour 1.20 1.20 1.80 Overheads 1.80 1.80 2.70 Fixed overheads total RM49,000 per period. Overhead absorption, using direct labour hours, is based upon the following production and sales volumes per period which reflect current sales demand. Product A 8,000 units Product B 12,000 units Product C 10,000 units The company is currently experiencing a shortage of direct labour and estimates that availability will be restricted to 6,200 hours per period. All direct employees are currently paid of RM6.00 per hour. Required: (i) Show that the availability of direct labour is currently a limiting factor. (4 marks) (ii) Determine how the available direct labour resource should be allocated to each of the products in order to maximise profit in a period. (9 marks) (c) It is anticipated that an increase in the labour rate of RM1.00 per hour would overcome the current shortage of direct labour supply. Required: Advise whether an increase in the labour rate of RM1.00 per hour would be likely to result in increased profit, compared with the situation in (b)(ii) above. (4 marks)