Jewel Ltd manufactures four products, A, B, C and D, and has produced the following budgeted figures for the forthcoming period:  Demand (units) 8,000 2,000 3,600 3,000 Income £ 40,000 20,000 27,000 38,400 Costs £ Material 12,000 8,000 12,000 12,000 Labour 12,000 6,000 8,000 15,000 Variable Overhead 2,000 1,000 1,700 2,400 Fixed Overhead 6,000 4,000 5,000 6,000  Labour is paid at £10 per hour and is limited to 3,800 hours for the period.  Required:  Calculate and determine the ranking with labour hours as the limiting factor of production.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 2 
Jewel Ltd manufactures four products, A, B, C and D, and has produced the following budgeted figures for the forthcoming period: 

Demand (units) 8,000 2,000 3,600 3,000 Income £ 40,000 20,000 27,000 38,400 Costs £ Material 12,000 8,000 12,000 12,000 Labour 12,000 6,000 8,000 15,000 Variable Overhead 2,000 1,000 1,700 2,400 Fixed Overhead 6,000 4,000 5,000 6,000 
Labour is paid at £10 per hour and is limited to 3,800 hours for the period. 
Required: 
Calculate and determine the ranking with labour hours as the limiting factor of production. 

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