Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
q4
Transcribed Image Text:Z Ltd manufactures three products, the selling price and cost details of which are given below:
Product X
Product Y
Product Z
£
£
£
Selling price per unit
75
95
95
Cost per unit:
Direct materials (£5/Kg)
Direct labour (variable)
(£8/hour)
Variable overhead
Fixed overhead
10
15
16
24
20
8.
12
10
24
36
30
In a period when direct materials are restricted in supply, the most and the least profitable uses of direct
materials are:
O a. Most profitable Y Least profitable Z
O b. Most profitable Y Least profitable X
O c. Most profitable X Least profitable Z
O d. Most profitable Z Least profitable Y
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