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

Costs and cost behaviour — practice question

The details below are given for two products: - material X used in each unit: product 1 requires $2$ kilos, product 2 requires $4$ kilos - material Y used in each unit: product 1 requires $3$ kilos, product 2 requires $1$ kilo - direct labour needed for each unit: product 1 requires $3$ hours, product 2 requires $6$ hours It is intended to make $100$ units of each product. $700$ kilos of material X and $400$ kilos of material Y are available. In total, $800$ direct labour hours can be worked. What is / are the limiting factor(s)?

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

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