Assuming that your calculations are prepared on 1 January 20x6,calculate four different cost-plus prices using four different cost bases which may help with the pricing decisions for Dream Limited.
Required: decision Note: Calculate the relevant cost of building 200 virtual headsets which may help with the pricing present your answer in a schedule that clearly shows the relevant cost value for sack of the items identified above and explain sach relevant cost value you have included in your schedule and why the values you have excluded are not teleand QUESTION 2 (12 marks) Dream Limited is engaged in the production of olive oil. (12 marks, 22 minutes) Subtotals of the budgeted overheads for the first six months of the 20X8 financial year (January to June 20X6) revealed the following Harvesting Variable overhead (R ) 2 970 000 Pressing General factory Fixed overhead (R ) 500 000 5 350 000 overhead 1 780 0oo Budgeted activity 1 600 000 1 900 000 Machine hours 140 000 112 000 Normal capacity Machine hours 200 000 160 000 1 . General factory variable overheads are apportioned in line with machine hours worked in each department and general factory fixed overhead are apportioned on the basis of the normal machine hour capacity of the two departments. 2 . It has been a long-standing company practice to establish selling prices by applying a mark-up on cost of 45%. The direct material content is R20 per unit. Each unit of the product will take three labour hours (five machine hours) in the harvesting department and four labour hours (six machine hours) in the pressing department Hourly labour rates are R25.00 and R26 respectively. The following actual information relates to the 20X5 financial year. January-June July-DecemberMGA40AT/POF117V - 2020 Instructional Teaching manual pack 20X5 20X5 Fixed selling and administration costs (dependent on the number of units sold) R456 000 QUESTION Distribution costs (Fixed and variable) R670 000 Semona (dependent on number of units sold) R1 342 800 classes o Sales units R1 057 100 40 000 the activ It is expected that the 30 000 custome Required: Activit Assuming that your calculations are prepared on 1 January 20X6, calculate four Provi different cost-plus prices using four different cost bases which may help with the pricing Com decision for Dream Limited. Issu Note: Round off your calculations to two decimal places. (12 marks) Coll Cus It is expected that the sales units during the first sixmonths The willbe 40 000 units . Fixed selling marred as N