QUESTION 1 A company that produces a single product has reportedly produced and sold 18000 units and has provided you with the information presented in Table 1. Table 1: Company Information Cost (R) Total Direct material cost 42000 Total direct labor cost 128 000 Variable manufacturing overheads 22000 Fixed manufacturing overheads 55000 85000 Fixed administration cost Commission paid (10% of sales) 37500 Calculate the following: 1.1 Variable cost per unit (5) 1.2 Sales price per unit (3) 1.3 Contribution per unit (3) 1.4 Contribution ratio (2) 1.5 Breakeven point in units (4) 1.6 Breakeven point in value (2) 1.7 The margin of safety units (2) 1.8 The margin of safety value 1.9 The margin of safety ratio (2) 1.10 The number of units the company must sell to make a profit of R270 000 (2) [30] QUESTION 2 A company has 2 departments and 2 service departments, Table 2: Total Overheads the costs that were incurred during the first production year: Table 2: Total Overheads 1 (R) 2 (R) Total (R) 130 000 Production Department 60 000 70 000 Service Department 16 000 18 000 34 000 Total 164 000 The service departments expenses are apportioned as presented in Table 3: Service Department Expenses: Table 3: Service Department Expenses Production Department Service Department 1 2 2 Service Department 1 40% 50% 10% Service 35% 45% 20% Department 2 2.1 Calculate the total cost shared between the 2 production departments (17) [17] QUESTION 2 A company has 2 departments and 2 service departments, Table 2: Total Overheads the costs that were incurred during the first production year: Table 2: Total Overheads 1 (R) 2 (R) Total (R) 130 000 Production Department 60 000 70 000 Service Department 16 000 18 000 34 000 Total 164 000 The service departments expenses are apportioned as presented in Table 3: Service Department Expenses: Table 3: Service Department Expenses Production Department Service Department 2 Service Department 1 40% 50% 10% Service 35% 45% 20% Department 2 2.1 Calculate the total cost shared between the 2 production departments (17) (171