Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

Data for two products are given below. Per unit for Product 1 / Per unit for Product 2 Material X: 2 kilos / 4 kilos Material Y: 3 kilos / 1 kilo Direct labour: 3 hours / 6 hours Output is planned at 100 units for each product. 700 kilos of material X and 400 kilos of material Y are available. In total, 800 direct labour hours can be worked. Which factors are limiting?

  • Adirect labour only
  • Bmaterial X only
  • Cmaterial Y only
  • Dall three inputs

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