udard Selling Price ct Materials ect Labour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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