1.1 A company is manufacturing building bricks and fire bricks. Both products require two processes Brick forming and Heat treatment. The requirements for the two bricks are BUILDING BRICKS 3 hrs FIRE BRICKS per 100 bricks Heat treatment per 100 hrs. costs of the two departments in one month Forming Units during the month 130000 70 000 REQUIRED MARKS 1.1 Prepare statement of manufacturing costs for the two types of bricks 1.2 Dundee limited undertook a contract for N$500 000 on 1st January 2018. On 31 December 2018 when the accounts were closed, the following details about the contract were gathered Materials 100.000 45.000 10.000 50 000 General Plant Purchased Materials on hand 31-12-2018 Wages accrued 31-12-2018 Work certied Cash received 5.000 200000 of Plant 5.000 The above contract contained an escalator clauses which read as follows: Inthe event of prices of matenals and rates of wages ncrease by more tha, 5%the contract price would be increased accordingly by 25% of the rise in the cost of materials and wages beyond 5% in each case It was found that since the date of signing the agreement the prices of materials and wage rates increased by 25% the value of the work certify does not take into account efect of REQUIRED MARKS 12 Prepare the contract account. Working should fomm part of the answers The Columbus Company produces only two products: a major computer part and cel phones. The company uses a normal costing system and overhead costs are currenty allocated using a plant-wide overhead rate based on direct labor hours. Outside cost consultants have recommended, however, the company use activity-based costing to charge overhead to products