Question
Proper solution please, thank you. Evaluate the option of ceasing the manufacturing and marketing of the single product and instead replace it with either product
| Proper solution please, thank you. Evaluate the option of ceasing the manufacturing and marketing of the single product and instead replace it with either product X or product Y. The relevant costing information in respect of product X and product Y are as follows:
Product X Product Y
Selling price 42 33 Direct Materials 15 15 Labour hours (0.50 per hour) 18 hours 9 hours |
| Variable overheads 50% of direct wages.
Question: During times of labour shortage, advise Juara Sdn Bhd which of the two products should be manufactured and marketed. |
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