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22 Motorquip Enterprises produces motors for motor cycles During the year 110 000 motors were produced. The actual labour was 60 000 hours at R9.50 per hour Motorquip Enterprises has the following labour standard 0.5 hour @ R10 Required 22.1 Calculate the labour rate veriance. 22.2 Calculate the labour efficiency variance. (3 marks) 4 marks) 23 ABC Limited produces a product which has a constant monthly demand of 8 000 units. The product requires a component that is purchased from a suppler at R20 per unit. The ordering cost is R1.20 per order. The holing cost is 10% of the unit purchase price. Required 2.3.1 Calulate the economic order quanbty for the year. 2.32 Calculate the number of orders that should be placed during the year. (4 marks) 3 marks) QUESTION 3 (20 Marks) 3. The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepled Initial cost Expected life Expected scrap value Expected net cash inflows:R End of year 1 Project A R400000 5 years R20 000 Project B R460 000 5 years R30 000 Project C R360 000 4 years R16 000 160000 200000 110 000 40 000 140 000 65 000 130 000 100 00095 000 120 000 100 000 110000100 000 100 000 The company estimates its cost of capital is 18%