answer the entire of question 11

M 31% 00:37 All File Reader Q Q Question 11 (15 Marks, 27 Minutes Normal 2018 Mukwe CC manufactures toys, one of its flagship products T-car, is sold locally to various retail outlets. The following details relate to T-car: Selling price Direct materials Direct labour Variable production overheads Per unit N$ 18.00 4.00 1.60 1.00 Annual fixed production overheads are budgeted to be N$ 960 000 and Mukwe CC expects to produce 640 000 units of the T-cars each year. Overheads are on a per unit basis overheads are N$ 900 000 for the year. Budgeted fixed selling costs are N$ 160 000 per quarter and administrative costs N$ 500 000 each year. Other actual figures for the first two quarters of 2018 are given below. 1st Quarter 2018 January - March 158 000 3 000 2nd Quarter 2018 April - June 161 000 Sales Inventory beginning Direct materials and labour will increase by 5% in the second quarter while variable production overheads and sales will remain unchanged. REQUIRED: MARKS 11.1 An income statement using Absorption costing method for the second quarter of 2018. 8 11.2 Using your answer in 1.1 above what would be the profit based on Marginal costing for the second quarter 2018 3 11.3 Managerial decision-making is a very crucial function in any organization. Discuss any four decisions made by management using marginal costing. 4 TOTAL MARKS 15 Question 12 (15 Marks, 27 Minutes) Supp 2018 Page 12 of 71 PREVIOUS NEXT