Z Limited manufactures three products, the selling price and cost details of which are given below:
| Product Don't use plagiarized sources. Get Your Custom Essay on z limited manufactures three products the selling price and cost details of which ar 610116 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | Product | Product | |
| X | Y | Z | |
| (£) | (£) | (£) | |
| Selling price per unit | 75 | 95 | 95 |
| Costs per unit: | |||
| Direct materials | 10 | 5 | 15 |
| (£5 /kg) | |||
| Direct labour | 16 | 24 | 20 |
| (£4/hour) | |||
| Variable overhead | 8 | 12 | 10 |
| Fixed overhead | 24 | 36 | 30 |
In a period when direct materials are restricted in supply, the most and the least profitable uses of direct materials are
| Most profitable | Least profitable | |
| A | X | Z |
| B | Y | Z |
| C | X | Y |
| D | Z | Y |
| E | Y | X |
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