I've spend hours trying to understand how you apply this theory. The internet is surprisingly absent of actual examples showing how it's done. The best I've found that explains the packag-merge is this page: https://create.stephan-brumme.com/length-limited-prefix-code...
This can in fact be solved directly and optimally: https://en.wikipedia.org/wiki/Package-merge_algorithm ; https://en.wikipedia.org/wiki/Huffman_coding#Length-limited_...