Reference no: EM131212243

Question 1:

The following data is supplied to you:

Required

Determine the total fixed cost and the variable cost per unit.

Question 2:

Boing-Boing Ltd has the following figures regarding its inventory:

Cost price per unit                                         R50 per unit

Storage cost per unit                                     R5 per unit

Annual usage                                                 100 000 units

Normal delivery time                                      2.5 weeks

Insurance cost per unit                                 R5 per unit

Interest rate                                                     9%

Ordering cost for 2 orders                               R80

Safety inventory                                            5 000 units

Assume 50 normal working weeks per year, and four weeks per month.

Required Calculate:
(a) EOQ
(b) Number of orders per year
(c) Ordering cost per year

Question 3:

Mr Malan and Mr Edwards are both artisans in a motor manufacturing company. Mr Malan is remunerated at R75 per hour and Mr Edwards at R55 per hour. Both work on average 40 hours per week. The following information is in respect of medical aid and pension fund contributions, by employee and employer, for both employees:

- Medical aid: 5% of normal wage per week for both employer and employee
- Pension fund: 8% per week for both employer and employee
- PAYE: 33% for Mr Edwards and 40% for M. Malan
- Both contribute 1% per week to the unemployment insurance fund

The two persons worked as follows for the week ending 11 May 20X7:

Overtime is remunerated as follows:

- Normal overtime: 11/2 times normal time

- Sundays and public holidays: twice the normal time Required

Compile wage sheets for Malan and Edwards.

Question 4:

The production manager of Walt (Pty) Ltd has recently attended a management course where the advantages of variance analysis were discussed. He feels such an analysis would assist in solving problems of budgetary control that arose during the year.

The following information relates to the past year's activities:

Actual manufacturing overheads                                R175 000.00

Actual direct labour hours                                           25 000 hours

Budgeted manufacturing overheads                           R125 000.00

Actual sales                                                                 R600 000.00

Budgeted direct labour hours                                      20 000 hours

Actual profit for the year                                              8185 000.00

Required:

(a) Calculate the predetermined overhead rate. Direct labour hours are used as an allocation base.

(b) Calculate overheads over- or under-absorbed.

(c) Can prime cost be calculated? Substantiate your answer.

Question 5 :
Jane's perfume boutique has recorded the following inventory movement of "Perfect Perfume" in March:

Receipts         2 March        60 bottles at 8140 each

                      9 March         60 bottles at R147 each

Issues           3 March          50 bottles

                      10 March       50 bottles

Required

Calculate the following:

a. the value of the 20 bottles closing inventory using the FIFO method and periodic inventory system; and

b. the value of the 20 bottles closing inventory using the weighted average method and perpetual inventory system.

Question 6:

Use the following information to do the calculations below:

Inventory (31/12/20X1):

Note: Only 80% of joint manufacturing overheads are applicable to the factory. Indirect material is only used in production.
Required

Calculate the following:
(a) Primary cost
(b) Conversion cost
(c) Manufacturing cost
(d) Cost of goods manufactured

Please help me to complete pre-determined manufacturing overhead and wages