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The following problem will be used for the next question, please take note of the given. Company XYZ has 4,000 machine hours of plant capacity
The following problem will be used for the next question, please take note of the given. Company XYZ has 4,000 machine hours of plant capacity per month which are to be allocated to products A and B. It takes 2 hours to manufacture Product A and 1 hour for Product B. The following are the cost per unit per product: Product A Product B Selling Price 299 235 Costs: Direct Material 100 70 Direct Labor 65 50 Variable Overhead 20 40 Variable Operating 40 20 Assuming that the company can sell all its product A output but only 3,500 units of product B. Determine the total profit based on allocations for Product A and B
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