The data given below relate to the remuneration of three employees of a company

Name of employee Adams Baba Sala

Units produced 2700 2000 2200

Time allowed in minutes per unit 6 15 12

Time taken in hours 400 380 360

GH GH GH

Rate per hour 12.50 10.50 12.00

Rate per unit produced 2.00 2.50 2.40

You are required to compute the earnings of each employee using each of the following methods

Hourly rate, Basic piece rate and Individual bonus scheme, where the employee receives a bonus in proportion of time saved to time allowed.

B. The following figures were extracted from the books of Sado Complex Limited for the year ended December 31 20X7:

GH

Sales 16,000

Direct materials 4,000

Direct labour 3,000

Factory overheads 3,000

Selling costs 2,000

Distribution costs 1,000

Administration costs 1,000

Units sold 2,000 units

Units manufactured 2,500 units

40% of selling, distribution and administration costs are fixed and third of the factory overhead can be assumed to vary directly with production.

You are require to:

a. Prepare the profit and loss account for the year ended December 31, 20X7 using the method of: Absorption costing and Marginal costing.

C. PZ Ltd is a manufacturing company that produce on standard type of production. The following information relates to the company.

GH

Variable cost per unit 8.00

Selling price per unit 12.00

Total fixed cost 2,400

a. Calculate

1. The break-even point in units.
2. The sales value at break-even points.
3. The C/S ratio.
4. The quantity of goods to be sold by the company in order to make a profit of GH 600.
5. The value of sales that will result in a profit of GH 600