1. A chain of ABC plc, FAMA Beauty 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 Maximum Demand 8,0 (units) 00 S1 S2 S3 $4 6,5 4,8 3,2 00 00 00 Selling and costing information (per unit) Selling price Direct materials Direct labours (Labour rate= 5/hr) Variable overhead Selling overhead OMR OMR 80 12 16 Co 8 4 OMR 110 30 20 10 4 OMR 145 35 15 14 4 OMR 170 40 20 16 4 The team wants to know about the limiting factor and requested you to help calculate the maximum profit which can be achieved in the period? They also asked to provide TWO alternatives FAMA Ltd must do to overcome the limiting factor?
1. A chain of ABC plc, FAMA Beauty 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 Maximum Demand 8,0 (units) 00 S1 S2 S3 $4 6,5 4,8 3,2 00 00 00 Selling and costing information (per unit) Selling price Direct materials Direct labours (Labour rate= 5/hr) Variable overhead Selling overhead OMR OMR 80 12 16 Co 8 4 OMR 110 30 20 10 4 OMR 145 35 15 14 4 OMR 170 40 20 16 4 The team wants to know about the limiting factor and requested you to help calculate the maximum profit which can be achieved in the period? They also asked to provide TWO alternatives FAMA Ltd must do to overcome the limiting factor?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:1. A chain of ABC plc, FAMA Beauty 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
S1 S2 S3 S4
Maximum Demand 8,0 6,5 4,8
4,8 3,2
(units)
00 00 00 00
Selling and costing information (per unit)
Selling price
Direct materials
Direct labours (Labour rate =
5/hr)
Variable overhead
Selling overhead
OMR
OMR OMR
80
110
12
26
16
100
8
4
30
20
10
4
OMR
145
35
15
14
4
OMR
170
40
20
16
4
The team wants to know about the limiting factor and requested you to help
calculate the maximum profit which can be achieved in the period?
They also asked to provide TWO alternatives FAMA Ltd must do to overcome the
limiting factor?
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