A-LevelAccountingTraditional costing methods9706/12 · May/June 2021 · Q271 Mark
A business manufactures three products. The following information was provided. per unit X $ Y $ Z $ selling price 450 350 400 direct material 160 100 150 direct labour 115 95 190 contribution 175 155 60 fixed overheads 135 110 10 profit 40 45 50 Direct labour is in short supply. All direct labour is paid at the same hourly rate. Which order of production should be used to maximise the profit?
AX→Z→Y
BX→Y→Z
CY→X→Z
DZ→Y→X
✓ Correct answer
C: Y→X→Z
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