Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 A seminar was recently attended by the Managing Director of XYZ Manufacturing Company Limited located at Sheffield. The focus of the seminar

image text in transcribedimage text in transcribed

Question 2 A seminar was recently attended by the Managing Director of XYZ Manufacturing Company Limited located at Sheffield. The focus of the seminar was "optimising scarce resources utility in a manufacturing setting with particular reference to linear programming". On his return to his base, he called for a meeting with the Management to share his experience from the seminar and the impact this will have on the decision by the Board to produce two major products in the years ahead. A group of external research experts had previously been commissioned and the following represents information from the research carried out by them The expected products are "Best" and "Smart" with expected costs statistics as follows: Best Material costs Labour costs Machinery time (5kg@50/kg) 250 (3kg@50/kg) Smart 150 Other Processing Time (4 hours @15/Hr) 60 (4 hours @10/hr) 40 (2hours @15/Hr) (5hours@10/Hr) 30 50 The applicable pricing policy is based on total cost of production plus 20% mark up on cost. The Company's overhead is expected to be 10,000,000 with normal production of 200,000 units of Best and 100,000 units of Smart and overhead absorbed on the basis of 3 to 2 respectively. The resources below will be available to the company in the following year. i. Materials 1,800,000kgs ii. Machine time 800,000 hours iii. Other process time 1,400,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M

5th Canadian edition

9781259105692, 978-1259103285

More Books

Students also viewed these Accounting questions