(34) QUESTION 3 (21 marks) (26 minutes) This question consists of two separate parts, both of which must be answered. PART 3.1 (15) Mbabane Limited has two (2) production departments: Assembly and Finishing and one service department: Repairs. A predetermined overhead absorption rate is established for each of the production department based on machine hours at normal capacity. The overheads of each production department comprise directly allocated expenses and a share of the overheads of the repairs department re- apportioned based on floor space. The floor space of the three (3) departments is 225, 375 and 150 square metres (m) for Assembly, Finishing and Repairs, respectively. All overheads are classified as fixed. (NB: Actual overheads incurred in each department were as per budget.) The following incomplete production-related information is available concerning the apportionment and absorption of production overheads for a specific period: Production Departments Service department Assembly Finishing | Repairs Budgeted allocated expenses (primary allocation) R988 965 R946 075 Budgeted service department apportionment (Secondary a allocation) Total budgeted overhead costs (d) R1 297 800 MAC1501/102 Production Departments Service department Repairs Assembly 50 000 () Normal machine hours capacity Overhead absorption rate Actual machine hours utilisation Over/under) absorbed overheads Finishing (e) R25,20 50 900 h) R28 800 (11) REQUIRED: 3.1.1 Calculate the missing figures represented by (a) to (h) [Show all your calculations). 3.1.2 Explain what factory capacity means? 3.1.3 Explain cost drivers. PART 3.2 Madimetja Limited uses a job costing system to measure and trace costs for its fashion clothing. The predetermined manufacturing overhead rate has been calculated as R10,00 per direct labour hour worked. Shirts Pants Socks Direct materials used. R24 000 R19 000 R23 000 Direct labour cost... R20 000 R14 000 R19 000 Direct labour hours. 1250 850 950 Manufacturing overheads are apportioned based on direct labour hours worked. REQUIRED: Calculate the total manufacturing costs of the shirts, pants and socks respectively. (21) QUESTION 4 (20 marks) (24 minutes) Nozamayedwa (Pty) Ltd manufactures and sells a single product. The following information is available for 2020: Budgeted sales in units are as follows: Quarter Units 7 500 9 000 10 000 12 000 The budgeted selling price per unit is R200. Production requirements per unit of finished product from quarter 2 onwards are as follows: Direct labour: 3 hours at R60 per hour. Direct materials: 4 kg at R50 per kg. Variable manufacturinn verheads R75 ner direct lahur hour