The following information is gathered in respect of Prduct A and B of X Ltd.
Product A
Product B
Rs.
Rs.
Selling price
100
64
Direct Materials
40
40
Direct labour hours
20 hours
4 hours
Labour hours available
1200 hours
Variable overhead 100% of direct wages.
Fixed overhead Rs. 2,000
Present the above information to show the profitability of products during labour shortage
and the maximum possible profit the firm can earn under the present situations.
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