A-LevelAccountingTraditional costing methods9706/12 · May/June 2015 · Q281 Mark
A business manufactures three products which all use the same material. The following information is available. X Y Z $000 $000 $000 selling price 160 190 240 direct material 56 68 90 direct labour 35 32 50 variable overhead 28 34 45 contribution 41 56 55 Direct material is in short supply. In which order should the products be manufactured to maximise profits?
AX → Y → Z
BY → X → Z
CY → Z → X
DZ → Y → X
✓ Correct answer
B: Y → X → Z
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