Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cuddly Limited makes stuffed toys. The RAK factory manufactures Camel, Oryx and Falcon.The following information is per unit of each product Camel Oryx Falcon Demand

Cuddly Limited makes stuffed toys. The RAK factory manufactures Camel, Oryx and Falcon.The following information is per unit of each product Camel Oryx Falcon Demand units 30,00040,00020,000AED AED AED Selling price 8.009.0010.00 Direct Materials 2.002.005.00 Direct labour 3.004.501.50 Variable overhead 1.001.001.00 Fixed overhead 1.001.001.50At maximum capacity, 40,000 labour hours are available. Labour is paid at 6 per hour. Total fixed costs are 100,000
Required:a. calculate the production plan that will maximise profit for the next year
b. prepare a marginal costing statement to show the profit that will be made using yourproduction plan
c. if the company has already committed to supplying 30,000 Oryx to a long termcustomer then what is the new production plan?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Remote Auditing A Quick And Easy Guide For Management System Auditors

Authors: Denise Robitaille

1st Edition

1932828311, 978-1932828313

More Books

Students also viewed these Accounting questions

Question

1040 Repeat Problem 1039 when iSt = 1:5 cos2000t utmA.

Answered: 1 week ago

Question

Describe the four specific guidelines for using the direct plan.

Answered: 1 week ago