GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA) Master's in Business Administration (Project Management Option) Mid...

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GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA) Master's in Business Administration (Project Management Option) Mid Semester Examination: Strategic Cost Management Time allowed: 1 Hour 30 Minutes Instruction: Answer all Questions Question 1 [Production Planning Decisions] Bombay Limited is capable of producing four products in the next production planning period. Estimates of cost, sales and production data are given below, per unit of each product: Products Wam Xam Yap Zap GH GH GH GHE 470 Selling price (per units) 380 450 700 Cost per unit: Labour at GH20/hr 60 40 140 100 120 Material at GH10/kg 60 180 100 Variable overheads 20 30 40 50 Maximum demand (units) 5,000 6,000 5,500 4,500 Required (a) to 189,400kgs. (b) (c) Determine the most appropriate production mix under the assumption that labour hours available is limited to 80% of full requirement. Determine the most appropriate production mix under the assumption that material is limited [6 Marks] [8 Marks] above. (d) Total of 20 Marks [4 Marks] Management has limited financial resources to spend either on material or labour. Recommend to management whether it should choose material or labour as the constraint based on your computation in requirement (c) above. Show all computations [2 Marks] Calculate total contribution from each production mix determined in requirement (i) and (ii) GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA) Master's in Business Administration (Project Management Option) Mid Semester Examination: Strategic Cost Management Time allowed: 1 Hour 30 Minutes Instruction: Answer all Questions Question 1 [Production Planning Decisions] Bombay Limited is capable of producing four products in the next production planning period. Estimates of cost, sales and production data are given below, per unit of each product: Products Wam Xam Yap Zap GH GH GH GHE 470 Selling price (per units) 380 450 700 Cost per unit: Labour at GH20/hr 60 40 140 100 120 Material at GH10/kg 60 180 100 Variable overheads 20 30 40 50 Maximum demand (units) 5,000 6,000 5,500 4,500 Required (a) to 189,400kgs. (b) (c) Determine the most appropriate production mix under the assumption that labour hours available is limited to 80% of full requirement. Determine the most appropriate production mix under the assumption that material is limited [6 Marks] [8 Marks] above. (d) Total of 20 Marks [4 Marks] Management has limited financial resources to spend either on material or labour. Recommend to management whether it should choose material or labour as the constraint based on your computation in requirement (c) above. Show all computations [2 Marks] Calculate total contribution from each production mix determined in requirement (i) and (ii)