QUESTION THREE [15 MARKS] Gas Africa (Pty) Ltd manufactures Petroleum products the process which involves the production of 10 000 liters of hydrogen and carbon a day, then processed to produce 6 000 liters of 93 octane petrol and 4 000 liters of 95 octane petrol. The joint cost before separation point came to an amount of R24 000. The following information is available: The different petroleum products, that is 93 Octane and 95 Octane products can either be sold at split off point of be further processed for premium quality. Further information is provided in the table below. 93 Octane R5 Details: Selling price at split off point Selling price after processing Further processing cost 95 Octane R3.75 R7.5 R7 500 R7 R5 000 31 Page CMACO22 NOVEMBER EXAMINATION 2021 REQUIRED a) Calculate the following for 93 octane and 95 octane petrol: 1. Profit or loss at split off point using net reliable value method. II. Profit after further processing using the physical method. [5] [10] QUESTION FOUR [30 MARKS] Avhasei (Pty) Ltd manufactures three products: Avant, Best, Candy. Data for the 2021 period is presented below: Product Number No. of Direct Machine Material Material of units production labour hours per cost per components runs required hours per unit unit per unit unit Avant 75 9 2 R30 8 Best 250 8 4 R75 5 Candy 250 7 2 R30 8 00 NAN o ono R R8 250 R7 680 R3 600 RZ 650 Overhead costs: Short-term variable costs Scheduling costs Set-up costs Material handling costs Cost drivers Short-term variable costs: Scheduling costs: Set-up costs: Materials handling costs: Activities Machine hours No. of production runs No. of production runs No. of components REQUIRED a) Calculate total manufacturing overhead using ABC costing system (Show all [29] calculations and Round off to the nearest whole number). Communication: Presentation and logic. [1]