The management accounting team of XYZ plc also came up with some questions and requested you to explain/answer them for the upcoming board meeting: 1. A chain of XYZ plc, BHealthy Ltd is a wholesale manufacturer of healthy foodstuffs. Because of a series of machine-related accidents at one of its factories, working practices have been revised and altered. It has resulted in a reduction in the number of labour hours available next period to 60,000. Four ready-made meals are produced in this factory and estimated data for the next accounting period are as follows:

Product $1 $2 Maximum Demand (units) 8,000 6,500 4,800 3,200Selling price 80 110 145 170 Direct materials 12 30 35 40 Direct labours (Labour rate = (5/hr) 16 20 15 20 Variable overhead 8 10 14 16 Selling overhead 4 4 4 4