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Question 2 10 marks ABC (pvt) ltd. is a manufacturing company based in Gaborone. Its employees are paid P80 per hour. Employee entitlements: Annual leave
Question 2 10 marks ABC (pvt) ltd. is a manufacturing company based in Gaborone. Its employees are paid P80 per hour. Employee entitlements: Annual leave 15 working days Paid public annual holidays 12 Idle time allowed 5% of available clock time NB: ABC (pvt) ltd operates 5 days per week which equates to 40 hours a week and there are 52 weeks in a year. Required: i. Calculate the annual productive time (8 marks) ii. Define Idle time (2 marks) Question 3 10 marks a. Joint products P and Q result from a single manufacturing process. Common costs added up to P192,000 in a period when output was 2,500 units of product P and 3,000 units of product Q. Products P and Q can be sold at the split-off point for P40 and P80 per unit respectively. Calculate the amount of the common process costs that will be apportioned to product Q based on physical measurement. (4 marks) Q P - ASM - 0 0 1 | R e v 0 0 6 E f f D a t e : 1 8 - 0 3 - 2 0 2 1 Page 4 of 6 b. Joint products X and Z come out of a single manufacturing process. Common costs totaled P192,000 in a period during which output was 2,500 units of product X and 3,000 units of product Y. Each of the joint products is further processed to provide packable output. Further processing costs of P12 per unit and P16 per unit are incurred for products X and Y, respectively and the products are sold as shown below: Product A P60 per unit Product B P104 per unit. Compute the amount of the common process costs which will be apportioned to product Y using market value. (6 marks)
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