Question3 (17 marks)

Auto Repairs Ltd has prepared the following budgeted figures for its Maintenance Department for the month of May 2018:

Hours		3000	5000
Costs		N$	N$
Power		40 000	46 000
Direct Labour		30 000	50 000
Depreciation		16 000	16 000
Salaries		20 000	20 000
Materials		21 000	35 000
Indirect Labour		18 000	20 200
Inspection		14 000	15 200

For the month of May 2018, the actual hours worked were 4 000 and the following actual costs were incurred:

	N$
Power	44 000
Direct Labour	38 000
Depreciation	16 000
Salaries	20 400
Materials	30 000
Indirect Labour	20 000
Inspection	15 800

Requirement:

2. Calculate the budgeted figures for the actual hours worked.
3. Calculate the budgeted rate per hour, based on both 3 000 and 5 000 hours, and state why there may be a difference between the two rates.