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Variable Selling Overhead Assignment

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February 18th, 2020

Question 14 Bloom 1d make 3perts A, and C The follow ng inflation is available Figures in Rupen p A 690 Selling price (peak season) Selling price loff season Material cost Labour (peak-season Labour loff season) Variable production overhead Variable selling overhead lonely for peak season) Labour hours required for one unit of production 630 550 604 690 550 260 230 290 120 110 150 100 99 149 100 120 130 10 20 15 7thour 11

Material cost and variable production overheads are the peal season and all- scores Variable selling overheads are not incurred in the offseason. Fixed costs amount to t 26.70 i each season, of which? 2.000 is towards salary for the special technician, incurred only for a product and t 4,780 is the amount that will be incurred on after-sales warranty and few maintenances of the only producto much competition Labour force can be interchangeably used for all the products. During peak- season, the labour shortage and the maximum labour hours available are L617 hours. Daring off- seas labour is freely available, demand is limited to 100 units of A. 115 units of B and 135 units of with production facility limited to 215 units for A, B and C put together Required ) Advice the company about the best product mix during peak season for maximum profit (0) What will I be the maximum profit for the offseason? .

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