The following compulsory deductions are made from the employees' total wages: PAYE 18% of taxable wages Pension. 8% of normal wages UIF... 1% of total gross wage Medical aid... 3% of normal wages The following contributions are made by the company: Pension.. 14% of normal wages (including vacation pay) UIF. 1% of total gross wages Medical aid 6% of normal wages (including vacation pay) Should the production time required for the 95 000 units exceed the available time for production, Shade Limited will use the overtime to cover the shortages. Overtime is remunerated at one and half (1,5) times the normal rate. REQUIRED: Calculate the following 2.2.1 Total annual hours available /budgeted for production, for all twenty (20) employees (4%) 2.2.2 The labour recovery rate for one employee (11) 2.2.3 Production time (both manual and machine operating time) required to produce 95 000 units (2) 2.2.4 The anticipated overtime pay for the year, for all twenty (20) employees QUESTION 3 (21 marks) (26 minutes) This question consists of two separate parts, both of which must be answered. PART 3.1 (15) Mbabane Limited has two (2) production departments: Assembly and Finishing, and one service department: Repairs. A predetermined overhead absorption rate is established for each of the production department based on machine hours at normal capacity. The overheads of each production department comprise directly allocated expenses and a share of the overheads of the repairs department re- apportioned based on floor space. The floor space of the three (3) departments is 225, 375 and 150 square metres (m) for Assembly, Finishing and Repairs, respectively. All overheads are classified as fixed. (NB: Actual overheads incurred in each department were as per budget.) The following incomplete production-related information is available concerning the apportionment and absorption of production overheads for a spectic period Production Departments Service department Assembly Finishing Repairs Budgeted allocated expenses (primary allocation) R988 965 R946 075 Budgeted service department apportionment (Secondary (a) allocation) Total budgeted overhead costs (d) R1 297 800 MAC1501/102 Production Departments Service department Repairs Assembly 50 000 (1) Normal machine hours capacity Overhead absorption rate Actual machine hours utilisation Overl(under absorbed overheaos Finishing e) R25,20 50 900 h) R28 800 (11) REQUIRED: 3.1.1 Calculate the missing figures represented by (a) to (h) [Show all your calculations). 3.1.2 Explain what factory capacity means? 3.1.3 Explain cost drivers. PART 3.2 The following compulsory deductions are made from the employees' total wages: PAYE 18% of taxable wages Pension. 8% of normal wages UIF... 1% of total gross wage Medical aid... 3% of normal wages The following contributions are made by the company: Pension.. 14% of normal wages (including vacation pay) UIF. 1% of total gross wages Medical aid 6% of normal wages (including vacation pay) Should the production time required for the 95 000 units exceed the available time for production, Shade Limited will use the overtime to cover the shortages. Overtime is remunerated at one and half (1,5) times the normal rate. REQUIRED: Calculate the following 2.2.1 Total annual hours available /budgeted for production, for all twenty (20) employees (4%) 2.2.2 The labour recovery rate for one employee (11) 2.2.3 Production time (both manual and machine operating time) required to produce 95 000 units (2) 2.2.4 The anticipated overtime pay for the year, for all twenty (20) employees QUESTION 3 (21 marks) (26 minutes) This question consists of two separate parts, both of which must be answered. PART 3.1 (15) Mbabane Limited has two (2) production departments: Assembly and Finishing, and one service department: Repairs. A predetermined overhead absorption rate is established for each of the production department based on machine hours at normal capacity. The overheads of each production department comprise directly allocated expenses and a share of the overheads of the repairs department re- apportioned based on floor space. The floor space of the three (3) departments is 225, 375 and 150 square metres (m) for Assembly, Finishing and Repairs, respectively. All overheads are classified as fixed. (NB: Actual overheads incurred in each department were as per budget.) The following incomplete production-related information is available concerning the apportionment and absorption of production overheads for a spectic period Production Departments Service department Assembly Finishing Repairs Budgeted allocated expenses (primary allocation) R988 965 R946 075 Budgeted service department apportionment (Secondary (a) allocation) Total budgeted overhead costs (d) R1 297 800 MAC1501/102 Production Departments Service department Repairs Assembly 50 000 (1) Normal machine hours capacity Overhead absorption rate Actual machine hours utilisation Overl(under absorbed overheaos Finishing e) R25,20 50 900 h) R28 800 (11) REQUIRED: 3.1.1 Calculate the missing figures represented by (a) to (h) [Show all your calculations). 3.1.2 Explain what factory capacity means? 3.1.3 Explain cost drivers. PART 3.2