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ABC LLC produces two products namely A and B of which data are given below: Direct materials of A and B are OMR 12 and
ABC LLC produces two products namely A and B of which data are given below: Direct materials of A and B are OMR 12 and OMR 7 respectively, Direct labour @1.5 per hour OMR 3 and OMR 4.5 respectively and Variable overhead @2 per hour OMR 4 and OMR 6 respectively. Its selling prices are OMR 50 and OMR 55 respectively, Standard time 2 hours and 3 hours respectively. State which product you would recommend to the ABC LLC when labour time is the key factor.
a.
Product A
b.
None of the given options
c.
Product B
d.
Both Product A and Product B
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