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Question 4 Company C makes and sells three types of products for which the following mformaiien is available: Standard cost and selling prices per unit:

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Question 4 Company C makes and sells three types of products for which the following mformaiien is available: Standard cost and selling prices per unit: Product type 'X' 'Y' '3' {RM} {RM} {RM} Direct material 3;} 11 El 1 53 Direct Wdepamnent 1 3;! 55 TD Direct W department 2 3:1 3 2 44 variable overheads m 20 23 Selling price 25E! 320 453 Fixed costs for the period are RM-l-- Direct M from department 1, 1which is highly skilled, is available for 21mm hours only in a period and is paid RME per hour. Beds, direct Whom departments 1 and 2 are variable costs. The maximum demand for the product is: EX! If! IE! 2,000 units 3,0041) units LEW units Required: {a} Calculate the shortage in hours of direct 1.633% from deparhnent 2. (3 marks) (h) Calculate the best production plan and the maximum prot that could he achieved from the plan. (1? marks) Hotel: 25 Marks]

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