The following information is extracted from the cost records of Kitchen Sdn Bhd, manufacturing double stove and single stove: Particulars Double Stove Single Stove Direct Material RM 6 RM 5 Direct Labour 12 hours @ RMO.50 per 8 hours @ RM 0.50 per hour RM 25 hour Selling Price RM 30 Variable Overhead 120% of direct labour Fixed Overhead RM 1,200 The directors want to be acquainted with the desirability of adopting any one of the following alternative sales mixes in the budget for the next period: (a) 150 units of Double Stove and 350 units of Single Stove. (b) 350 units of Double Stove and 150 units of Single Stove. (c) 400 units of Double Stove and 100 units of Single Stove. (d) 100 units of Double Stove and 400 units of Single Stove. (e) 250 units of Double Stove and 250 units of Single Stove. (f) 500 units of Double Stove only. (g) 500 units of Single Stove. REQUIRED: (a) Compute the net profit for each of the above alternatives. (b) Chose the best alternative for the management.

The following information is extracted from the cost records of Kitchen Sdn Bhd, manufacturing double stove and single stove: Particulars Double Stove Single Stove Direct Material RM 6 RM 5 Direct Labour 12 hours @ RMO.50 per 8 hours @ RM 0.50 per hour RM 25 hour Selling Price RM 30 Variable Overhead 120% of direct labour Fixed Overhead RM 1,200 The directors want to be acquainted with the desirability of adopting any one of the following alternative sales mixes in the budget for the next period: (a) 150 units of Double Stove and 350 units of Single Stove. (b) 350 units of Double Stove and 150 units of Single Stove. (c) 400 units of Double Stove and 100 units of Single Stove. (d) 100 units of Double Stove and 400 units of Single Stove. (e) 250 units of Double Stove and 250 units of Single Stove. (f) 500 units of Double Stove only. (g) 500 units of Single Stove. REQUIRED: (a) Compute the net profit for each of the above alternatives. (b) Chose the best alternative for the management.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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