KPL Inc is considering making a bid for 100% of TLC Incs equity capital. TLC has a P/E ratio of 14 and earnings of K500m. It is expected that K150m in synergy savings will be made as a result of the takeover and the P/E ratio of the combined company is estimated to be 16. KPL currently has a P/E ratio of 17 and earnings of K750m.

Required What is the maximum amount that KPL should pay for TLC?

X Ltd uses a standard absorption cost accounting system. The following details have been extracted from a standard cost card for one of its products.

K

Direct materials 5.00

Direct labour 7.40

Variable overhead 2.30

Fixed overhead 3.80

18.20

The fixed overhead cost per unit is based on an estimated production of 1000 units per month. During October 2020 the actual number of units produced was 900 and the following variances arose.

K

Direct materials 180 favourable

Direct labour 280 adverse

Variable overhead 240 adverse

Fixed overhead 200 adverse

Required

Calculate the actual cost of:

A. Direct materials (6 Marks)

B. Direct labour (6 Marks)

C. Variable overhead (6 Marks)

D. Fixed overhead (7 Marks)