A-LevelAccountingTraditional costing methods9706/12 · May/June 2023 · Q291 Mark
A company manufactures three products: X, Y and Z. The table provides per unit information concerning the three products. per unit product X $ product Y $ product Z $ selling price 100.00 120.00 130.00 direct material cost 40.00 45.00 48.00 direct labour cost 20.00 25.50 29.00 variable overhead cost 15.00 18.00 20.00 fixed overhead cost 18.00 18.00 27.00 profit 7.00 13.50 6.00 All three products are made from the same material. If the material is in short supply, which manufacturing pattern will maximise profit?
AY
X
Z
BY
Z
X
CZ
X
Y
DZ
Y
X
✓ Correct answer
B: Y Z X
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