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Question 1 XYZ Sdn. Bhd. produces three types of special machines. The information about a unit of machine is as follow: Direct materials Direct
Question 1 XYZ Sdn. Bhd. produces three types of special machines. The information about a unit of machine is as follow: Direct materials Direct labor (RM15/hour) Variable overheads Selling price Machine hours Demand of product (units) Machine A Machine B Machine C RM RM RM 70 60 50 180 120 60 40 40 40 570 480 350 20 hours 4,000 12 hours 14 hours 6,000 7,000 The following is information for the next three months production: i. Material supply is unlimited. H. Machine hours can only be operated for 280,000 hours and direct labour for 120,000 hours. Required: a) Determine the limiting factor. (6 marks) b) Show the ranking in which the product should be manufactured based on the limiting factor. (15 marks) c) Determine the optimum production plan that will maximize the profit of XYZ Sdn. Bhd. (4 marks)
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