QUESTION $1(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Use the information provided below to calculate the following for the week ended $29$ July $2023$ in respect of J$.$

Khoza:

$1\mathrm{.}1\mathrm{.}1$ Direct labour cost to Redbro Enterprises $(5$ marks$)$

$1\mathrm{.}1\mathrm{.}2$ Net wage of J$.$ Khoza $(3$ marks$)$

INFORMATION

Redbro Enterprises submitted the following information for the week ended $29$ July $2023$ in respect of

employee, J$.$ Khoza, an employee at Project K:

Day Hours worked

Sunday $4$

Monday $8$

Tuesday $8$

Wednesday $8$

Thursday $8$

Friday $9$

Saturday $5$

Additional information

$1.$ The income tax $($PAYE$)$ deduction is calculated at $20\%$ of taxable income $($i$.$e$.$ Gross wage $$ Pension

deduction$).$

$2.$ The employee$$s deduction for medical aid amounted to R$400$ for the week. The employer contributes

$1\mathrm{.}5$ times the amount contributed by the employees to the fund.

$3.$ The unemployment insurance fund $($UIF$)$ deduction of the employees amounts to $1\%$ of the gross wage.

The employer contributes the same amount as the employees to the fund.

$4.$ J$.$ Khoza is paid R$100$ per hour during normal working hours.

$5.$ Contributions to the pension fund are calculated on the normal wages and is made up as follows:

Employee$$s deduction $8\%$

Employer$$s contribution $12\%$

$6.$ The normal working week is $8$ hours per day from Monday to Friday. Any time worked in addition to this

on weekdays and Saturdays is overtime, calculated at $1\mathrm{.}5$ times the normal rate.

$7.$ Overtime on Sundays is remunerated at twice the normal rate.

$1\mathrm{.}2$

REQUIRED

Use the information provided below to calculate the following independently:

$1\mathrm{.}2\mathrm{.}1$ Break$-$even value. $(4$ marks$)$

$1\mathrm{.}2\mathrm{.}2$ Total Marginal Income and Net Profit$/$Loss if the sales volume is $20\%$ below

expectations. $(4$ marks$)$

$1\mathrm{.}2\mathrm{.}3$ Break$-$even quantity if Alfredo Manufacturers wants to make provision for a decrease

in fixed costs of R$138712$ and a decrease in the selling price of R$4$ per unit. $(4$ marks$)$

INFORMATION

Alfredo Manufacturers manufactures and sells one product from Project M and the following projections apply

to $2024$:

Sales R$6000000$

Direct materials cost R$2000000$

Direct labour cost R$760000$

Variable manufacturing overheads R$480000$

Fixed manufacturing overheads R$800000$

Fixed selling and administration costs R$560000$

Variable selling and administration costs $6\%$ of sales

$60000$ units of the product are expected to be manufactured and sold.

QUESTION $2(20$ Marks$)$

REQUIRED

Use the information provided below to prepare the Cash Budget of Project Oscar for February, March and

April $2025.($Provide separate monetary columns for each month.$)$

INFORMATION

The following information relates to Project Oscar which commenced a year ago.

$1.$ Additional machinery and equipment will be purchased on credit on $28$ February $2025$ for R$500000.$ A

deposit of $40\%$ will be paid on $28$ February $2025$ and the balance will be paid in five equal monthly

instalments commencing March $2025.$

$2.$ As additional factory space is required the existing rental of R$168000$ per year, payable monthly, will be

increased by $20\%$ with effect from $01$ March $2025.$

$3.$ Estimated sales at R$60$ per unit for January to April $2025$ are as follows:

Month Units

January $3000$

February $3300$

March $3400$

April $3200$

$4.$ Cash sales are expected to comprise $40\%$ of the total sales. Twenty percent $(20\%)$ of the cash sales is

subject to a $10\%$ cash discount. The balance of the sales will be on credit and debtors are expected to

pay in the month after the sale.

$5.$ Variable manufacturing costs per unit are as follows:

Direct materials R$10$

Direct labour R$8$

Variable overheads R$6$

Expected production figures are as follows:

Units

December $20243900$

January $20253400$

February $20253700$

March $20253800$

April $20253600$

$6.$ Direct materials will be purchased on credit and paid two months after the month of purchase.

$7.$ Direct workers will be paid on the last working day of each month.

$8.$ Fifty percent $(50\%)$ of the variable manufacturing overheads will be paid in the month in which they are

incurred. The balance is payable in the following month. $($Show only the total amount payable for each

month.$)$

$9.$ Fixed overheads amount to R$16000$ per month and include depreciation of R$4000$ per month. Fixed

overheads are paid for in the month in which they are in