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Company ABC produces two products, X and Y. Product X requires 3 units of direct materials and 2 hours of direct labor, while Product Y



    • Company ABC produces two products, X and Y. Product X requires 3 units of direct materials and 2 hours of direct labor, while Product Y requires 4 units of direct materials and 3 hours of direct labor.
    • The unit costs for direct materials are $10 for Product X and $12 for Product Y, while direct labor costs are $20 per hour.
    • The company incurred $6,000 in manufacturing overhead costs during the period.
  • Requirements:

    • Calculate the total manufacturing cost for each product.
    • Determine the total cost of goods manufactured for both products combined.
    • Analyze the cost differences between the two products.
    • Provide recommendations for cost optimization.

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