udard Selling Price ct Materials ect Labour

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 68P: (Appendix 3A) Scattergraph, High-Low Method, Method of Least Squares, Use of Judgment The management...
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QUESTION 2
Wonder Woman Sdn Bhd manufactures two products, the X and the Y, which
have the following standard selling price and standard costs per unit.
X
Y
RM
RM
Standard Selling Price
Direct Materials
120
128
32
26
Direct Labour
40
50
Variables Production Overhead
20
16
Variable Selling Overhead
16
27
A production line can be set up to produce either produce either product X
or product Y. The following table gives the breakdown for each product.
Labour (minutes) Material (kg)
Testing
(minutes)
Product
X
30
2
3
Y
15
4
4
In any one week the availability of resources are expected to be subjects to
the following limitations:
Direct Labour (minutes)
Direct Materials
1800 minutes
| 280 kg
The production department stated that the testing equipment must be used for at
least 240 minutes. Also, because of existing orders, at least 20 units of product X
must be produced.
Required:
Determine by graphical means the optimal mix of X and Y at Wonder Woman
Sdn Bhd. (Calculate the exact values of X and Y by using the equations of the
lines as appropriate).
a.
b. Calculate the contribution achieved by adopting the optimal mix calculated in (a)
above.
Transcribed Image Text:QUESTION 2 Wonder Woman Sdn Bhd manufactures two products, the X and the Y, which have the following standard selling price and standard costs per unit. X Y RM RM Standard Selling Price Direct Materials 120 128 32 26 Direct Labour 40 50 Variables Production Overhead 20 16 Variable Selling Overhead 16 27 A production line can be set up to produce either produce either product X or product Y. The following table gives the breakdown for each product. Labour (minutes) Material (kg) Testing (minutes) Product X 30 2 3 Y 15 4 4 In any one week the availability of resources are expected to be subjects to the following limitations: Direct Labour (minutes) Direct Materials 1800 minutes | 280 kg The production department stated that the testing equipment must be used for at least 240 minutes. Also, because of existing orders, at least 20 units of product X must be produced. Required: Determine by graphical means the optimal mix of X and Y at Wonder Woman Sdn Bhd. (Calculate the exact values of X and Y by using the equations of the lines as appropriate). a. b. Calculate the contribution achieved by adopting the optimal mix calculated in (a) above.
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