Answer all the questions below.

Q1

Under a premium bonus scheme, workers received a guaranteed basic hourly minimum rate of pay plus a bonus of 50% of the time saved. No payment is paid beyond the time allowed but the bonus which is paid at the basic hourly rate is applicable to the accepted output only. No penalty is imposed on rejected output. The following details are available for the month of January 2003 Worker A B C Time allowed per unit (hrs) 1/6 Units produced 474 684 175 Units rejected 54 84 25 Time taken (hrs) 78 72 80 Basic Pay per hour (Kshs) 6 6 3 Required From the above information calculate for each employee a) Bonus hours and amount of bonus paid b) Gross wages earned c) Labour cost for each good unit soldThe following information is available in respect of overhead costs by Govi Led Maki Finishin Packi Maint Powe Admi Sellin Distri ng g ng e n. g butio nance n Shs Shs Shs Shs Shs Shs Shs Shs Allocated Overheads Indirect materials 1500 1000 2400 4800 3300 1000 1200 1600 Indirect labour 10000 1200 900 14000 4400 2000 800 5600 Other expenses 15000 8000 3000 1500 12400 24000 6600 4000 Depreciation 8000 800 1200 2000 4800 1500 2300 1800 Unallocated overheads 18000 Rates Net vending machine 2300 cost Heat and light 4000 Other statistics Occupancy sq. m 600 400 500 50 100 200 50 100 Number of 20 40 50 20 10 60 15 5 employees Power estimate 15000 2500 2500 2000 1500 500 1000 (Kwh) Maintenance (hours) 2000 200 400 1000 250 400 750 Required Calculate the final distribution of overheads to cost centers including the reapportionment of maintenance and power generation service costs to user cost centers where a) The reciprocal nature of maintenance and power generation center is ignored. b) The elimination method is used whereby the costs of each service center are apportioned in turn between users but once they have been apportioned they are eliminated from any subsequent apportionment c) An algebraic approach is used as an alternative to the repeated distribution method