Q7:

a) Calculate the companys manufacturing overhead rate. (2)

b) Calculate the total cost of the job. (4)

c) Calculate over- or under-applied overheads. (2)

d) Calculate the gross profit on the job. (2)

Show all your workings, where necessary round-off to two (2) decimal places.

Cupboard Innovations (Pty) Ltd specialises in the manufacturing of high-end cupboards for kitchens, bedrooms and closets. The company uses a job costing system and absorbs manufacturing overheads based on labour hours. The following budgeted information for 2023 has been made available: An order was received for kitchen cupboards and details pertaining to the order are as follows: Actual manufacturing overheads incurred amounted to R13 500 . The order was completed and sold to the customer for R60 000