QUESTION $1(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Calculate the remuneration of Molly for $08$ February $2024$ using Taylor$$s differential piecework system.

$(4$ marks$)$

INFORMATION

The following information relates to the remuneration of Molly for $08$ February $2024$:

Standard time allowed $20$ minutes per unit

Standard workday $8$ hours

Normal wage rate R$120$ per hour

Premium $90\%$ of piecework rate if below standard

$110\%$ of piecework rate if standard or above standard

Molly$$s production for the day $27$ units

$1\mathrm{.}2$

REQUIRED

Use the information provided below to calculate the economic order quantity.

$(4$ marks$)$

INFORMATION

The average monthly usage of an item that costs R$2$ each and sells for R$4\mathrm{.}50$ each is $600$ units. The

holding cost is $10\%$ of the cost of the item. The cost to place an order is R$20.$

$1\mathrm{.}3$

REQUIRED

Calculate the earnings of Amanda for the day using the straight piecework incentive scheme.

$(4$ marks$)$

INFORMATION

The standard time to produce a product is $10$ minutes. Amanda is paid R$120$ per hour and the normal

working day is $8$ hours. If Amanda produces more than her quota, she receives $1\mathrm{.}5$ times the hourly

rate on the additional output. Amanda produced $54$ units for the day.

$1\mathrm{.}4$

REQUIRED

Complete the following table that would reflect the value of issues to production and inventory balances

using the first$-$in$-$first out method of inventory valuation:

Purchases Issues$/$Returns Balance

Date Quantity Price Amount Quantity Price Amount Quantity Price Amount

$(4$ marks$)$

INFORMATION

The transactions of Kerman Manufacturers for January $2024$ are as follows:

January Transaction Units Price per unit

$01$ Opening inventory $4000$ R$3\mathrm{.}00$

$06$ Purchased from a supplier $1600$ R$3\mathrm{.}20$

$20$ Purchased from a supplier $3000$ R$3\mathrm{.}30$

$07$ Issued to production $3200?$

$27$ Issued to production $4000?$

$1\mathrm{.}5$

REQUIRED

Use the information provided below to determine the expected productive working hours of Anna for

$2023.$ Commence your calculations with the number of days in the year.

$(4$ marks$)$

INFORMATION

Anna worked for $9$ hours per day from Monday to Friday during $2023.$ She is entitled to $28$ days paid

vacation leave. There were $13$ public holidays, $12$ of which fell on weekdays. The business is closed

on public holidays.

QUESTION $2(20$ Marks$)$

$2\mathrm{.}1$

REQUIRED

Study the information provided below and prepare the Income Statement for the year

ended $31$ December $2023$ using the marginal costing method. $(11$ marks$)$

INFORMATION

Marburg Manufacturers started operations on $02$ January $2023.$ It produced $50000$ units of the only

product that it manufactures and sold $80\%$ of the units produced at a price of R$150$ per unit during

$2023.$ Variable manufacturing costs amounted to R$50$ per unit and variable marketing costs amounted

to R$30$ per unit. Fixed costs totalled R$1200000$ of which $70\%$ was for manufacturing and $30\%$ was for

administration and marketing.

$2\mathrm{.}2$

REQUIRED

Use the information given below to calculate the following variances. In each case also state whether

the variance is favourable or unfavourable.

$2\mathrm{.}2\mathrm{.}1$ Material quantity variance $(3$ marks$)$

$2\mathrm{.}2\mathrm{.}2$ Total labour variance $($without using the labour rate and efficiency variances$)(3$ marks$)$

$2\mathrm{.}2\mathrm{.}3$ Variable manufacturing overheads expenditure variance $(3$ marks$)$

INFORMATION

Sona Manufacturers uses the standard costing system. The standards are as follows:

Direct material $3$ kg @ R$8$ per kg

Labour $5$ hours at R$100$ per hour

Variable manufacturing overheads R$20$ per labour hour

Fixed overheads R$30000$

Normal production $19000$ units

Actual information for March $2024$:

Direct material used $61000$ kg at R$7\mathrm{.}80$ per kg

Labour $98000$ hours at R$105$ per hour

Variable manufacturing overheads R$1862000$

Fixed overheads R$32000$

Actual production $20000$ units

QUESTION $3(20$ Marks$)$

REQUIRED

Study the information given below and answer the following questions independently:

$3\mathrm{.}1$ Use the marginal income ratio to calculate the break$-$even value. $(4$ marks$)$

$3\mathrm{.}2$ Calculate the sales volume required to achieve a net profit of R$1740000.(4$ marks$)$

$3\mathrm{.}3$ Calculate the total Marginal Income and Net Profit$/$Loss if an increase in

advertising expense by R$200000$ is expected to increase sales by $3000$ units. $(4$ marks$)$

$3\mathrm{.}4$ Calculate the margin of safety $($in units$)$ if the variable manufacturing costs

increase by $10\%$ and fixed manufacturing overheads cost increase by R$24450.(4$ marks$)$

$3\mathrm{.}5$ Based on the expected sales volume of $40000$ units, determine the sales price

per unit that will allow the company to break even. $(4$ marks$)$

INFORMATION

Peryton Limited produces only one product. Expected sales are $40000$ units per year and sales price

is R$150$ per unit. The relevant costs are as follows:

Unit Variable cost Total fixed cost

Direct materials R$30-$

Direct labour R$36-$

Manufacturing overheads R$15$ R$450000$

Marketing expenses R$9$ R$150000$

Administrative expenses $-$ R$180000$

QUESTION $4(20$ Marks$)$

REQUIRED

Prepare the following for April, May and June $2025$:

$4\mathrm{.}1$ Debtors Collection Schedule $(6$ ma