Fixed overheads Fixed overhead is absorbed on the basis of direct labour cost. The products pass through two processes Y and 2, with associated labour cost of 10 per direct labour hour in each. The direct labour time taken associated with the two products for these processes is shown below: Selling prices are set by the market. The current market price for this 75 and for B is 62. At these prices, the market will absorb as many units of A and B as the company can produce. The ability of the company to produce A and B is limited by the capacity to process the products through V and Z. The company operates a two-shift system, resulting in 20 working hours per day. Process 2 is a single process line and 3 hours in each shift will be downtime. Process Y can process 2 units simultaneously, although this doubles the requirement for direct labour. Process Y can operate for the full 20 working hours each day. Rguired: a) Using a throughput accounting approach, determine the production plan the company should follow to maximise prots. [1!) marks] b) The company Is to introduce a new product T in the coming year. The proposed selling price of product T is 320 for each unit and sales for the coming year are expected to be 740 units. Calculate the target cost for each unit for the coming year If the company requires a return of 12% on its investment of 340,000 in product T