MLUNGISI QUESTIONS.pdf X File C:/Users/daisy/Desktop/MLUNGISI%20QUESTIONS.pdf of 3 + TARead Rotate (Ctrl+D ADVANCED DIPLOMA IN FINANCIAL MANAGEMENT-ACADEMIC AND ASSESSMENT CALENDAR DISTANCE 9.2.2 ADVANCED MANAGERIAL ACCOUNTING [100 QUESTION ONE [20] EC, an engineering company, produce tools and components to customers' specific requirements. EC uses absorption costing to absorb overheads into the cost of each customer order. Selling prices are usually determined by adding a 30% mark up to the costs incurred in completing the order. EC has recently been asked to provide a quotation for a new customer. The details of the work have been discussed at a meeting with the customer and the following resource requirements have been determined. The cost of these resources has been calculated using the company's routine costing system. Note R 1 100 2 150 3 800 4 Direct material A Direct material B Skilled labour Unskilled labour Supervision labour Machine overhead Other overhead Total cost 5 square metres @ R20 10 square metres @ R15 100 hours @ R8 60 hours @ R6 20 hours @ R20 20 hours @ R12 160 labour hours @ R4 360 5 400 240 6 7 840 2.690 Notes: 1. Direct material A is currently held in Inventory and is in regular use. The latest price paid for material A was R22 per square metre, but the replacement cost would be R23 per square metre 2. Direct material is currently not used by EC and would have to be bought if the work is undertaken. The minimum order from the supplier of material B is for 25 Type here to search RE the cont haurred in completing the order. EC horucently been asked to provide a quotation for a new customer. The details of the work have been docused at a meeting with the customer and the following resource requirements have been determined. The cost of the resources has been calculated using the company's routine conting system. Note R 1 100 2 150 3 800 4 Direct materiel A Direct material B Skilled labour Unskilled labour Supervision labour Machine overhead Other overhand Total cost 5 square metros @ R20 10 square metres @ R15 100 hours @ RB 60 hours RB 20 hours @ R20 20 hours @ R12 160 labour hours @ R4 380 5 400 240 6 7 840 2.690 Notes: 1. Direct material A is currently held in Inventory and is in regular use. The latest price paid for material A was R22 per square metre, but the replacement cost would be R23 per square metre. 2 Direct material B is currently not used by EC and would have to be bought if the work is undertaken. The minimum order from the supplier of material B is for 25 square metres. EC does not expect to be able to use this material on any other work. though it would be able to sell it as scrap for R2 per square metre. REGENT BUSINESS SCHOOL (RBS) - JANUARY 2020 23 Te to search ADVANCED DIPLOMA IN FINAMCIAL MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR DISTANCE REQUIRED: 1.1 Prepare a schedule that shows the relevant cost of the new customer's order. (13) 1.2 Explain, for each of the resource Items numbered 1 to 7, the reason for each of the values you have included in your answer to 1.1 above. QUESTION TWO [20] Discuss the advantages and disadvantages of contracts on behalf of manufacturers and contracts on behalf of contractees. QUESTION THREE [40] PART A [20] The management of Lota Ltd used discounted cash-flow techniques to evaluate capital expenditure projects. They recognise that budgeting several years ahead is subject to estimating probabilities. The termoremo BI here to search 8 o MLUNGISI QUESTIONS.pdf X File C:/Users/daisy/Desktop/MLUNGISI%20QUESTIONS.pdf of 3 + TARead Rotate (Ctrl+D ADVANCED DIPLOMA IN FINANCIAL MANAGEMENT-ACADEMIC AND ASSESSMENT CALENDAR DISTANCE 9.2.2 ADVANCED MANAGERIAL ACCOUNTING [100 QUESTION ONE [20] EC, an engineering company, produce tools and components to customers' specific requirements. EC uses absorption costing to absorb overheads into the cost of each customer order. Selling prices are usually determined by adding a 30% mark up to the costs incurred in completing the order. EC has recently been asked to provide a quotation for a new customer. The details of the work have been discussed at a meeting with the customer and the following resource requirements have been determined. The cost of these resources has been calculated using the company's routine costing system. Note R 1 100 2 150 3 800 4 Direct material A Direct material B Skilled labour Unskilled labour Supervision labour Machine overhead Other overhead Total cost 5 square metres @ R20 10 square metres @ R15 100 hours @ R8 60 hours @ R6 20 hours @ R20 20 hours @ R12 160 labour hours @ R4 360 5 400 240 6 7 840 2.690 Notes: 1. Direct material A is currently held in Inventory and is in regular use. The latest price paid for material A was R22 per square metre, but the replacement cost would be R23 per square metre 2. Direct material is currently not used by EC and would have to be bought if the work is undertaken. The minimum order from the supplier of material B is for 25 Type here to search RE the cont haurred in completing the order. EC horucently been asked to provide a quotation for a new customer. The details of the work have been docused at a meeting with the customer and the following resource requirements have been determined. The cost of the resources has been calculated using the company's routine conting system. Note R 1 100 2 150 3 800 4 Direct materiel A Direct material B Skilled labour Unskilled labour Supervision labour Machine overhead Other overhand Total cost 5 square metros @ R20 10 square metres @ R15 100 hours @ RB 60 hours RB 20 hours @ R20 20 hours @ R12 160 labour hours @ R4 380 5 400 240 6 7 840 2.690 Notes: 1. Direct material A is currently held in Inventory and is in regular use. The latest price paid for material A was R22 per square metre, but the replacement cost would be R23 per square metre. 2 Direct material B is currently not used by EC and would have to be bought if the work is undertaken. The minimum order from the supplier of material B is for 25 square metres. EC does not expect to be able to use this material on any other work. though it would be able to sell it as scrap for R2 per square metre. REGENT BUSINESS SCHOOL (RBS) - JANUARY 2020 23 Te to search ADVANCED DIPLOMA IN FINAMCIAL MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR DISTANCE REQUIRED: 1.1 Prepare a schedule that shows the relevant cost of the new customer's order. (13) 1.2 Explain, for each of the resource Items numbered 1 to 7, the reason for each of the values you have included in your answer to 1.1 above. QUESTION TWO [20] Discuss the advantages and disadvantages of contracts on behalf of manufacturers and contracts on behalf of contractees. QUESTION THREE [40] PART A [20] The management of Lota Ltd used discounted cash-flow techniques to evaluate capital expenditure projects. They recognise that budgeting several years ahead is subject to estimating probabilities. The termoremo BI here to search 8 o