14. An enterprise uses an incentive wage scheme. Factory workers are paid N$4 per unit, with a guaranteed wage of N$11,20 per hour. The following details are available for two of the employee's productivity for the week ending 21 April 2006 (each employee worked a total of 40 hours that week): Employee Units produced G Wong 120 F Chimmy 102 The wages earned by the two employees for the week are as follows: G Wong N$448 N$448 N$480 N$480 N$480 F Chimmy N$ 480 N$448 N$448 N$408 N$ 480 15. Shirley is working in a factory where she is paid N$4,50 per hour. She is expected to manufacture 3 units of a particular product per hour. During the past week she worked 40 hours and manufactured 165 units. if she is paid according to the Halsey-Weir bonus system, her total earnings for the week would be equal to: A N$173,25 D N $202,50 B N$180,00 N$229,00 N$198,00 Page 15 of 27 16. Under-recovery of overheads occurs when: The basis of allocating overheads has changed during the period B The amount of actual overheads incurred is less than the overheads that have been charged to production Actual overheads have fallen in relation to what they were expected to be The amount of budgeted overheads is less than the actual overheads incurred. The amount of overheads charged to production is lower than the actual overheads incurred. The following information refers to questions 17 - 20: Thataone Ltd supplied the following information: Sales revenue N$65 000 Direct material 21 500 Direct labour 16 000 Factory supervisor's salary 7 000 Factory rent 6 000 Sales office expenses 1 000 Indirect material 2 000 Administrative office rent 3 000 Factory insurance 2 000 Depreciation of factory equipment 3 000 17. The amount of manufacturing overheads is: A N$20 000 N$57 500 N$47 000 B N$36 000 C N$37 500 18. The amount of prime cost is: A N$20 000 B N$36 000 C N $37 500 N$57 500 N$39 000 19. The amount of conversion cost is: A N$20 000 B N$36 000 C N$37 500 N$57 500 N$39 000 20. The amount of gross income is: N$3 000 N$3 500 C N$5 500 DN$7500 E N$9 000 Page 16 of 27 14. An enterprise uses an incentive wage scheme. Factory workers are paid N$4 per unit, with a guaranteed wage of N$11,20 per hour. The following details are available for two of the employee's productivity for the week ending 21 April 2006 (each employee worked a total of 40 hours that week): Employee Units produced G Wong 120 F Chimmy 102 The wages earned by the two employees for the week are as follows: G Wong N$448 N$448 N$480 N$480 N$480 F Chimmy N$ 480 N$448 N$448 N$408 N$ 480 15. Shirley is working in a factory where she is paid N$4,50 per hour. She is expected to manufacture 3 units of a particular product per hour. During the past week she worked 40 hours and manufactured 165 units. if she is paid according to the Halsey-Weir bonus system, her total earnings for the week would be equal to: A N$173,25 D N $202,50 B N$180,00 N$229,00 N$198,00 Page 15 of 27 16. Under-recovery of overheads occurs when: The basis of allocating overheads has changed during the period B The amount of actual overheads incurred is less than the overheads that have been charged to production Actual overheads have fallen in relation to what they were expected to be The amount of budgeted overheads is less than the actual overheads incurred. The amount of overheads charged to production is lower than the actual overheads incurred. The following information refers to questions 17 - 20: Thataone Ltd supplied the following information: Sales revenue N$65 000 Direct material 21 500 Direct labour 16 000 Factory supervisor's salary 7 000 Factory rent 6 000 Sales office expenses 1 000 Indirect material 2 000 Administrative office rent 3 000 Factory insurance 2 000 Depreciation of factory equipment 3 000 17. The amount of manufacturing overheads is: A N$20 000 N$57 500 N$47 000 B N$36 000 C N$37 500 18. The amount of prime cost is: A N$20 000 B N$36 000 C N $37 500 N$57 500 N$39 000 19. The amount of conversion cost is: A N$20 000 B N$36 000 C N$37 500 N$57 500 N$39 000 20. The amount of gross income is: N$3 000 N$3 500 C N$5 500 DN$7500 E N$9 000 Page 16 of 27