Please answer all questions and include all necessary steps to solving these questions.

1. GRR Martin Ltd produces three products: Lannister, Stark and Tyretl. All three products include raw material A in their manufacture. During June, the production manager is planning to repair machines that are used to manufacture all three products and as a result, the machines will be available for a total of 5,320 hours of production. Data for each product are as follows: La nnister Stark Tyrell umlltnuml Selling price 84.00 47.60 58.80 Material 12.00 2.00 1.50 Labour 28.00 14.00 14.00 Variable production overhead 8.40 2.80 11.20 Fixed production overhead 28.00 22.40 16.80 Fixed selling & distribution costs 4.00 2.00 m Prot 3.60 4.40 9.30 Maximum demand (units in June) 700 400 370 There are no inventories during the month. Fixed production overheads are absorbed on the basis of 5.60 per machine hour. Required: (a) Calculate the amount of resource that restricts production in June. (8 marks) (b) Determine the optimal production plan that will maximise prot for the company. (16 marks) Question Continued A0106 2019/20 A 800 Turn over Page 4 (c) Based on the optimal production plan, calculate total contribution and prot for GRR Martin Ltd. (6 marks) (Total: 30 marks)