Question
A company produces three products, and is reviewing the production and sales budgets for the next accounting period. Product A Product B Product C Selling
A company produces three products, and is reviewing the production and sales budgets for the next accounting period.
| Product A | Product B | Product C | |
| Selling price/unit | RM400 | RM300 | RM200 |
| Direct material/unit | RM153 | RM101 | RM80 |
| Direct labour/unit | RM95 | RM80 | RM60 |
| Production overhead/unit | RM40 | RM35 | RM15 |
| Maximum demand (units) | 200 | 600 | 1,000 |
Overhead absorption rate per machine hour is RM5 and the machine hours are strictly limited to 7,800 hours in total.
The profit that can be earned if the company is to maximise its profits is RM___. Please show all your workings.
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
