handy headphones in Johannesburg based company that is manufacturing light weight,flexible Bluetooth enables and water proof headphones.it is providing to be very popular among people wanting to listen to music in the shower or while swimming sessions furthermore the headphones are competitively priced at R1590. before the headphones can be delivered to the warehouse for distribution, they pass through a five stage production process. the headphones start in the Molding department and work their way through the wiring department and IT department,polishing department and finally the packaging department. as well as these five production department s, there are two other non production departments within this factory. these services department are the canteen and maintenance department. all employees who work in the factory have the benefit of eating at the subsidized canteen. the maintenance department is responsible for general maintenance and repairing of the machinery within the whole factory. handy currently makes 2500 headphones.

the forecast figures for the handy headphones for 2022 are as follows: factory rent R1,400,000 redecorating of Molding department R200,000 electricity cost R300 000 depreciation of machinery R50000 direct materials R240 000 direct labor - skilled workers R200,000 direct labour-unskilled workers R260 000 direct expenses R100000 training for IT department staff R65000

packaging department floor resurfacing-R30000

new machinery for maintenance department R235000 canteen redesign R550 000

the departmental specifications are provided below: Moulding-area(m) 1000,machine value 200000, number of staff 10

wiring-area m 800,machine value 40 000,number of staff 40

IT -area m 550,machine value 550000,number of staff 12

polishing-area m 650,machine value 380000,number of staff 6

packaging-area m 700,machine value 230000,number of staff 12 maintenance-area m 60,machine value 0, number of staff 20

canteen-area m 70,machine value 200000,number of staff 0

practical task

use a spreadsheet to complete the following task.. you are a newly appointed cost accountant for handy headphones, and you are curious to know what the total cost per headphone is working out. you need to analyze the overhead cost,how they are allocated apportioned and reapportioned as there may be some changes made by management accountant based on your findings.the management accountant would like to know all these cost would be shown the standards cost card.

research and presentation using PowerPoint present the outcome and show how cost change from the spreadsheet task,if the management accountant goes ahead with their plans to do the following:

Plan A: Take two members of staff from the maintenance department and transfer them to the IT department. there are two members of staff on long-term sick leave, and this is affecting the production and causing a bottleneck in the IT department

PlanB: employ six new members of staff, who will receive accelerated training and start working in the IT department as soon as training is completed. this will increase training costs by R30000 and skilled direct labor by R100000. the number of headphones produced would then increase by an extra 80 units.