Figure 25-1
Hassel Company Manufactures Two Different Products, X and Y

question 30

Multiple Choice

Figure 25-1
Hassel Company manufactures two different products, X and Y. The company has 100 kgs of materials and 300 direct labour hours available for production.
The time requirements and contribution margins per unit are as follows: $\begin{array}{lrr}&\text { Product X }&\text { Product Y }\\\text { Contribution margin per unit } & £ 4 & £ 5 \\\text { Materials per unit (lbs.) } & 1 & 2 \\\text { Direct labour hours per unit } & 4 & 2\end{array}$
-Refer to Figure 25-1. What is the equation for the constraint on direct labour?

• A)£1X + £2Y \(\le\) 300
• B)£4X + £2Y \(\le\)100
• C)£4X + £5Y \(\le\) 100
• D)£4X + £2Y \(\le\)300

---

Definitions:

Principal

The amount borrowed or invested.

Accrued Interest

Interest that has been incurred but not yet paid, reflecting money owed on loans or credit extended.

Dishonored Note

A dishonored note is a promissory note that has not been paid upon its maturity date.

Journal Entries

Records of financial transactions in the chronological order by which they occur, entered in the accounting records.