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Question no. 42 and 43 with solution please, thank you b. P113.26 e. P 140.00 gh two production 42. A company produces two products, A
Question no. 42 and 43 with solution please, thank you
b. P113.26 e. P 140.00 gh two production 42. A company produces two products, A and B, which pass through two processes, J and K. the time taken to make each product in each process is Product A Product B 6.5 minutes 9 minutes Process J Process K 22 minutes 15 minutes The company operates a 16-hour day and the processes have an average de each day of: Process J 2.5 hours Process K 2 hours verage downtime The cost and revenue for each unit of each product are: Product A Direct materials 15.00 Direct labor 17.00 Variable overhead 8.00 Fixed costs 8.00 Total cost 48.00 Selling price 87.50 Product B 15.00 12.00 6.00 6.00 39.00 72.50 Sales demand restricts the output of A and B to 40 and 60 units a day, respectively. The daily production plan that would maximize the throughput contribution is a. 40 units of A c. 36 units of A and 4 units of B b. 38 units of A d. 34 units of A and 5 units of B e. 56 units of B (cima) 43. Q Limited has in stock 10,000 kg of V, a raw material which it bought for P5 per kg 5 years ago. This was bought for a product line which was discontinued 4 years ago. At present, V has no use in its existing state but could be sold as scrap for P1.50 per ka. One of the company's current products (QX) requires 2 kg of a raw material which is available for P4.50 per kg. V can be modified at a cost of P1 per kg so that it may be used as a substitute for this material. However, after modification, 3 kg of V is required for every unit of QX to be produced. Q Limited has now received an invitation to tender for a product which could use V in its present state. The relevant cost per kg of V to be included in the cost estimate for the tender is: a. P1.00 c. P2.00 b. P1.50 d. P5.00 (cima)Step by Step Solution
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