1. The following details are available regarding three products

Product X Y Z

Sh. Sh. Sh.

Selling price 200 300 400

Direct materials (Sh.4 per Kg) 20 112 90

Direct labour (Sh.8 per hour) 80 44 120

Variable overheads 40 22 60

Variable overheads are recovered at the rate of Sh.4 per hour. Total fixed overheads are Sh.120,000

Required: Calculate the priority ranking of the products when the limiting factor is:

1. Sales (1 marks)
2. Labour (2 marks)

Materials