Question 1 (10 Marks)
Rundu Agro CC sells all sorts of farming equipment to farming community in Rundu. It purchases 50 kg
bags of fertilizer X at N$1 150 per bag and sells 800 of these bags every month. The cost of placing an
order for 13 bags is N$3 991 and the administrative cost per bag is N$90. Insurance cost N$175 per bag
and the storage cost is N$300 for 50 bags. Rundu Agro CC's investment rate is 12% per annum.
Calculate:
1.1 Economic order quantity (5)
1.2 Number of orders per year (3)
1.3 Ordering cost per year (2)
Question 2 (20 Marks - 36 Marks) NK Ventures manufactures school desks on tender for the Ministry of Education. They have employed five (5) employees to assemble the desks. The agreement with the employees is that they will be paid weekly. After the first week, the following information is presented to you to prepare the payroll for the week ending 16 May 2020: Employee Hours worked Labour rate Comments per hour B Tjiti 66 N$27 2 hours spend fixing mistakes S Gorn 25 N$22 Was appointed during the week R Mann 13 N$28 Attend to personal matter during the week J Hindjo N$30 R Angul N$25 According to the company policy, a normal work week consists of 50 hours (9 hours a day from Monday to Friday and 5 hours on a Saturday). Overtime is remunerated at time and a half. Medical aid contributions are calculated at 10%% of an employee's taxable income which is split 40:60 between the employee and the employer. Social Security Fund Contributions are 1,80%% of the basic salary and it is split 50:50 between the company and the employee. Pension contributions of 7,50% of basic salary are made by the employee whilst the company contribute 10% of basic salary to the pension fund. PAYE is 18% of taxable income. REQUIRED: MARKS 2.1 Prepare an individual payroll for each of the employees for the week ended 16 May 2020 14 2.2 Complete journal entries of the payroll accounts. h TOTAL MARKS 20Question 3 (20 Marks - 36 Marks) Comptech CC provides four different types of services to small business clients. These services are: Sales undertaken by the Sales Division Programming undertaken by the Programming Division Repairs and Maintenance undertaken by the Maintenance Division Networks undertaken by the Technical Division The labour and overhead costs for the company for the year ended 30 April 2020 are expected to be as follows: Budget for the Year ended 28 February 2013 Notes Payrol Salaries - Programmers 108 750 Salaries - Sales personnel 70 000 Salaries - Technicians 7 92 750 Salaries - Supervisors 54 300 Other Rentals paid 10 000 Security costs 22 000 Electricity costs 11 500 Insurance of premises 27 500 Depreciation Computer Equipment 36 875 Office Equipmen 12 750 546 425 Sales Programming | Maintenance Network Value of Computer Equipment (NS) 400 000 120 0DO 10 000 10 000 Value of Office Equipment (NS) 30 00D 10 000 15 000 5 000 Floor Area ( m 100. 20 60 40 Electricity usage (Kilowatt hours) 280 100 40 40 Budgeted operated hours 12 000 1 800 3 000 7 600 Note 1: The Technicians are shared between the Maintenance and Technical Divisions in proportion to the budgeted hours for those two divisions. Note 2: Supervisor salaries are apportioned to the other divisions in proportion to the salaries of the other divisions. Required: 3.1 |Produce an overhead apportionment schedule for the year ended 30 April 2020. 16 3.2 Calculate an overhead absorption rate for each of the divisions, that is: Sales, Programming, Maintenance, Network ( four decimal places). TOTAL MARKS 20
