Question

30 Management Accou 8. The following information in respect of product A and B of a firm is given: Product A Product B Sales Direct material Direct labour hours 0.50 per hr) 75 30 15 hrs. 48 * 30 2 hrs. Variable overhead - 100% of direct labour; fixed overhead 3,000. Present the above information to show the profitability of products during labour shortage Ans. Profitability of A per labour hr. *2; B per labour hr. 8. B is more profitable than A.​

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