the question is attached. 1. A chain of ABC plc, FAMA Beauty Ltd is a wholesale manufacturer of healthyfoodstuffs. Because of a series of machine-related accidents at one of its factories,working practices have been revised and altered. It has resulted in a reduction in thenumber of labour hours available next period to 60,000. Four ready-made meals areproduced in this factory and estimated data for the next accounting period are asfollows:ProductS1 S2 S3 S4Maximum Demand 8,0 6,5 4,84,8 3,2(units)00 00 00 00Selling and costing information (per unit)Selling priceDirect materialsDirect labours (Labour rate =5/hr)Variable overheadSelling overheadOMROMR OMR80110122616100843020104OMR1453515144OMR1704020164The team wants to know about the limiting factor and requested you to helpcalculate the maximum profit which can be achieved in the period?They also asked to provide TWO alternatives FAMA Ltd must do to overcome thelimiting factor?

To produce maximum demand, 78,000 labour hours are required but only 60,000 labour hours are…

1. A chain of ABC plc, FAMA Beauty Ltd is a wholesale manufacturer of healthy foodstuffs. Because of a series of machine-related accidents at one of its factories, working practices have been revised and altered. It has resulted in a reduction in the number of labour hours available next period to 60.000. Four ready-made meals are produced in this factory and estimated data for the next accounting period are as follows: Product Maximum Demand 8,0 (units) 00 S1 S2 S3 $4 6,5 4,8 3,2 00 00 00 Selling and costing information (per unit) Selling price Direct materials Direct labours (Labour rate= 5/hr) Variable overhead Selling overhead OMR OMR 80 12 16 Co 8 4 OMR 110 30 20 10 4 OMR 145 35 15 14 4 OMR 170 40 20 16 4 The team wants to know about the limiting factor and requested you to help calculate the maximum profit which can be achieved in the period? They also asked to provide TWO alternatives FAMA Ltd must do to overcome the limiting factor?

1. A chain of ABC plc, FAMA Beauty Ltd is a wholesale manufacturer of healthy foodstuffs. Because of a series of machine-related accidents at one of its factories, working practices have been revised and altered. It has resulted in a reduction in the number of labour hours available next period to 60.000. Four ready-made meals are produced in this factory and estimated data for the next accounting period are as follows: Product Maximum Demand 8,0 (units) 00 S1 S2 S3 $4 6,5 4,8 3,2 00 00 00 Selling and costing information (per unit) Selling price Direct materials Direct labours (Labour rate= 5/hr) Variable overhead Selling overhead OMR OMR 80 12 16 Co 8 4 OMR 110 30 20 10 4 OMR 145 35 15 14 4 OMR 170 40 20 16 4 The team wants to know about the limiting factor and requested you to help calculate the maximum profit which can be achieved in the period? They also asked to provide TWO alternatives FAMA Ltd must do to overcome the limiting factor?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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