Buraaq Corporation produces three products: Alpha, Beta and Gamma. The following information is available: The wage rate for direct labour is PKRXX per hour. • The variable overhead relates to machinery costs and is PKR 0.50 per machine hour. Information per unit Maximum demand in units Alpha 10,000 Beta Gamma 11, 000 8, 000 Variable overhead (PKR) Material (PKR) Direct labour (PKR) Selling price (PKR) Direct labour (hours) 0.5 1.5 3.5 4 6. 4 4 5 10 15 20 0.4 hours 0.4 hours 0.5 hours Required: Calculate the contribution per unit for each of the products Alpha, Beta and Gamma. • Calculate the total contribution earned by Buraaq Corporation if the company makes enough of each product to meet the maximum demand for each product. • Calculate the total number of machine hours and labour hours needed to produce the maximum demand of all three products.

Buraaq Corporation produces three products: Alpha, Beta and Gamma. The following information is available: The wage rate for direct labour is PKRXX per hour. • The variable overhead relates to machinery costs and is PKR 0.50 per machine hour. Information per unit Maximum demand in units Alpha 10,000 Beta Gamma 11, 000 8, 000 Variable overhead (PKR) Material (PKR) Direct labour (PKR) Selling price (PKR) Direct labour (hours) 0.5 1.5 3.5 4 6. 4 4 5 10 15 20 0.4 hours 0.4 hours 0.5 hours Required: Calculate the contribution per unit for each of the products Alpha, Beta and Gamma. • Calculate the total contribution earned by Buraaq Corporation if the company makes enough of each product to meet the maximum demand for each product. • Calculate the total number of machine hours and labour hours needed to produce the maximum demand of all three products.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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