Sir, am having problem with the ‘twice as many’..please explain..Thanks
A company makes two products, Reds and Blues. Total F.OHD to absorb during May are $60000, Budgeted Prod levels for Red for May are 10000 units. Twice as many Blues as Reds are to be produced. Each Red takes 1 hour of labour and each Blue takes 0.25 hours. OHDs are to be absorbed on a labour hour basis. What is the OAR for each finished Blue?