Example 8: LF Ltd makes a single product for which the standard costs details are as follows. Direct material 3 per kg) Direct labour ( 8 per hour) Production overhead 12 72 18 Total production cost 102 Demand for next period will be 20,000 units. No stocks are held and only 75,000 kg of material and 190,000 hours of labour will be available. What will be the limiting factor next period? Solution