Reference no: EM132561954

Virtual Reality Manufacturing is responsible for both manufacturing and selling futuristic products to the general public. At the end of the financial year (29 February 2020), you were provided with the cost accounting-related information related to the products manufactured and sold by Virtual Reality Manufacturing:

Product name

Detailed information

Hoverboard

In order to manufacture one of these products, the following costs are applicable

Direct material: R3 000

Direct labour: R2 000

Manufacturing overheads: R1 000

This product is sold at a mark-up of 150% on cost price.

Oculus Rift Device

In order to manufacture one of these products, the following costs are applicable

Direct material: R6 000

Direct labour: R3 000

Manufacturing overheads: R3 000

This product is sold at a mark-up of 200% on cost price.

Leap Motion Screen

In order to manufacture one of these products, the following costs are applicable

Direct material: R5 000

Direct labour: R8 000

Manufacturing overheads: R4 000

This product is sold at a mark-up of 50% on sales price.

REQUIRED:

Question 1: Calculate the manufacturing cost of one Hoverboard.

Question 2: Calculate the manufacturing cost of one Oculus Drift Device.

Question 3: Calculate the manufacturing cost of one Leap Motion Screen.

Question 4: Calculate the selling price of one Hoverboard.

Question 5: Calculate the selling price of one Oculus Drift Device.

Question 6: Calculate the selling price of one Leap Motion Screen.

Question 7: Assume that 1 200 Hoverboards, 500 Oculus Drift Devices and 320 Leap Motion Screens were manufactured and sold throughout the financial year, calculate the profit made on the sales