Question 2 Nar Limited manufactures a range of cable products for the electronics industry. The company has been notified of an upcoming scarce availability situation in relation to a raw material called Rhond', a metal used in the production of three of the company's cable products. The maximum availability of this material will be restricted to 15,000 metres in the upcoming quarter. You have been asked by the production manager to make appropriate changes to the production budget for these three cable products and have received the following resource usage information for each product: Note 1 Cable X 300 metres Cable y Cable Z 250 metres 500 metres Length of 1 production roll Resources required to make I roll VARIABLE COST ITEMS Materials Rhond Plastic Labour time 2 2 3 315 metres 6 kilos 12 hours 260 metres 5 kilos 12 hours 505 metres 12 kilos 36 hours FIXED COST ITEMS Machine time 4 24 hours 24 hours 36 hours Notes: 1. Each type of cable is produced in standard lengths as indicated in the above table. It is not possible to produce any other roll length due to the need to comply with industry standards. 2. Each production roll of cable requires a length of 'Rhond' which includes a waste allowance. The amount wasted is sold for scrap and cannot be used to make up other rolls. Rhond costs RM20 per metre and plastic costs RM10 per kilo. (Scrap proceeds can be ignored for the purposes of this question). 3. Labour is charged at a rate of RM13 per hour. 4. Machine time is charged at a rate of RM30 per hour. Question 2 Nar Limited manufactures a range of cable products for the electronics industry. The company has been notified of an upcoming scarce availability situation in relation to a raw material called Rhond', a metal used in the production of three of the company's cable products. The maximum availability of this material will be restricted to 15,000 metres in the upcoming quarter. You have been asked by the production manager to make appropriate changes to the production budget for these three cable products and have received the following resource usage information for each product: Note 1 Cable X 300 metres Cable y Cable Z 250 metres 500 metres Length of 1 production roll Resources required to make I roll VARIABLE COST ITEMS Materials Rhond Plastic Labour time 2 2 3 315 metres 6 kilos 12 hours 260 metres 5 kilos 12 hours 505 metres 12 kilos 36 hours FIXED COST ITEMS Machine time 4 24 hours 24 hours 36 hours Notes: 1. Each type of cable is produced in standard lengths as indicated in the above table. It is not possible to produce any other roll length due to the need to comply with industry standards. 2. Each production roll of cable requires a length of 'Rhond' which includes a waste allowance. The amount wasted is sold for scrap and cannot be used to make up other rolls. Rhond costs RM20 per metre and plastic costs RM10 per kilo. (Scrap proceeds can be ignored for the purposes of this question). 3. Labour is charged at a rate of RM13 per hour. 4. Machine time is charged at a rate of RM30 per hour