Required:a. Identify by showing calculations, which is the limiting factor of the company for themonth...
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Required:a. Identify by showing calculations, which is the limiting factor of the company for themonth of June:i. Labour hourii. Machine hour
Aneka Sedap Sdn Bhd manufactures four types of cookies which are packed in special tin containers with the company popular brand name. The following table shows information for the month of June for each of the products: Product name Shortbread Cheese Almond Chocolate Finger London Finger Selling price . . . 45.00 Direct material . . - 9.00 Direct labour . . . 900 Production overhead . . . 10.00 Prot per container \"El.3133- 17-00 Labour hours per container 3 2 Expected demand (containers) 200 250 Due to the forthcoming festive season. demand for the cookies is higher than normal. The Production Manager has informed the Management Accountant that the availability of labour Page 3 of 4 and machine time will be restricted in June. This is because one of the mixing machines will undergo routine maintenance, thus reducing the machine hours available for production to 1,350 hours only. As for labour, only 3,200 labour hours is available for the month. The overheads above are absorbed based on labour hours. Budgeted xed overheads of RM3,900 for June is absorbed based on 3,000 budgeted labour hours
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