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. UIF... Medical aid.. 14% of normal wages (including vacation pay) 1% of total gross wages 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 (24) [34 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 specific period: Production Departments Service department Assembly Finishing Budgeted allocated expenses (primary allocation) R988 965 R946 075 Budgeted service department apportionment (secondary ) allocation) Total budgeted overhead costs d R1 297 800 OUT MAC1501/102 Production Departments Service department Repairs Assembly 50 000 Normal machine hours capacity Overhead absorption rate Actual machine hours utilisation Over/under) absorbed overheads 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. (6) PART 3.2 Madimetja Limited uses a job costing system to measure and trace costs for its fashion clothing. The predetermined manufacturing overhead rate has been calculated as R10,00 per direct labour hour MAC1501/102 Normal machine hours capacity Overhead absorption rate Actual machine hours unsation Over/under absorbed overheads Production Departments Service department Assembly Finishing | Repairs 50 000 R 25,20 50 900 R28 800 h) 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 Madimetja Limited uses a job costing system to measure and trace costs for its fashion clothing. The predetermined manufacturing overhead rate has been calculated as R10,00 per direct labour hour worked. Shirts Pants Socks Direct materials used. R24 000 R19 000 R23 000 Direct labour cost... R20 000 R14 000 R19 000 Direct labour hours... 1 250 850 950 Manufacturing overheads are apportioned based on direct labour hours worked. REQUIRED: Calculate the total manufacturing costs of the shirts, pants and socks respectively. (6) (21) QUESTION 4 (20 marks) (24 minutes) Nozamayedwa (Pty) Ltd manufactures and sells a single product. The following information is available for 2020: Budgeted sales in units are as follows: Quarter Units 7 500 9 000 10 000 12 000 The budgeted selling price per unit is R200. Production requirements per unit of finished product from quarter 2 onwards are as follows: Direct labour. 3 hours at R60 per hour. Direct materials: 4 kg at R50 per kg. Variable manufacturing overheads: R25 per direct labour hour. Fixed manufacturing overheads per quarter are estimated at R75 000. Inventories on hand at the end of quarter 1 were as follows: Direct materials: 4 000 kg at R40 each. Finished goods: 1 500 units at R420 each No opening or closing inventory of work-in-process is kept. The company wishes its closing inventory of finished goods to be equal to 20% of the following quarters budgeted sales in units from quarter 2 onwards. The company policy was updated after quarter 1 to state that the closing inventory of direct materials must be equal to 25% of the current quarter's production requirements in kilograms. Inventories on hand at the end of quarter 1 were as follows: Direct materials: 4 000 kg at R40 each. Finished goods: 1 500 units at R420 each. No opening or closing inventory of work-in-process is kept. The company wishes its closing inventory of finished goods to be equal to 20% of the following quarter's budgeted sales in units from quarter 2 onwards. The company policy was updated after quarter 1 to state that the closing inventory of direct materials must be equal to 25% of the current quarter's production requirements in kilograms. The company uses the first-in-first-out (FIFO) method for inventory valuation. REQUIRED: Prepare the following operational budgets for quarter 2 and quarter 3 respectively (show separate columns for quarter 2 and quarter 3 - no total column is required) 4.1 Sales budget 4.2 Production budget (in unis) 4.3 Direct materials budget 4.4 Direct labour budget 4.5 Production overheads budget QUESTION 5 (15 marks) (18 minutes) Motlalepula Limited financial statements for the years ended 31 December 2018 and 2019 are as follows: Motlalepula Limited Statement of profit or loss and other comprehensive income 2019 2018 Revenue Cost of sales Gross profit Administrative expenses Distribution costs Operating profit Interest paid Profit before tax Income tax expense Net profit for the period 1 300 000 (650 000) 650 000 (100 000) 50 000) 500 000 (55 000 445 000 (133 500) 311 500 1450 000 (750 000) 700 000 (150 000) 100 000 450 000 75 000) 375 000 (112 500) 262 500 MAC1501/102 Motlalepula Limited Statement of financial position 2019 R 2018 ASSETS Non-current assets Property, plant and equipment Current assets Inventories Trade receivables Cash and cash equivalents Total assets 2 470 000 2100 500 1 380 000 1 490 000 500 000 450 000 650 000 800 000 230 000 240 000 3 850 000 3 590 500 2017 2016 R 1 500 in 1000 EQUITY AND LIABILITIES R MAC1501/102 Motlalepula Limited Statement of financial position 2019 R 2018 ASSETS Non-current assets Property, plant and equipment Current assets Inventories Trade receivables Cash and cash equivalents Total assets 2 470 000 1 380 000 500 000 650 000 230 000 3 850 000 2017 2100 500 1 490 000 450 000 800 000 240 000 3590 500 2016 R 1 500 000 220 000 1 720 000 1 000 000 190 500 1 190 500 EQUITY AND LIABILITIES Issued capital Accumulated profits Capital and reserves Non-current liabilities Long term loans Current liabilities Trade payables Short-term interest-bearing) borrowings Current portion of non-current labilities Total equity and liabilities 1 200 000 930 000 300 000 250 000 380 000 3 850 000 1 500 000 900 000 250 000 350 000 300 000 3590 500 years ended REQUIRED 5.1 Use the above information to calculate the following ratios for the 31 December 2019 and 2018/ respectively 5.1.1 Operating profit margin 5.1.2 Return on assets 5.1.3 Current ratio 5.1.4 Quick ratio 5.1.5 Debt ratio 5.2 Comment on the liquidity of the company. 5.3 Briefly discuss the limitations of ratio analyses. ANNEXURE C: Compulsory assignment 01 (second semester) Please note: - This assignment must be submitted by second semester students only. - This assignment consists of 20 multiple-choice questions, which count three marks each. - Fach question must be considered independently unless specific reference is made to information in 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. UIF... Medical aid.. 14% of normal wages (including vacation pay) 1% of total gross wages 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 (24) [34 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 specific period: Production Departments Service department Assembly Finishing Budgeted allocated expenses (primary allocation) R988 965 R946 075 Budgeted service department apportionment (secondary ) allocation) Total budgeted overhead costs d R1 297 800 OUT MAC1501/102 Production Departments Service department Repairs Assembly 50 000 Normal machine hours capacity Overhead absorption rate Actual machine hours utilisation Over/under) absorbed overheads 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. (6) PART 3.2 Madimetja Limited uses a job costing system to measure and trace costs for its fashion clothing. The predetermined manufacturing overhead rate has been calculated as R10,00 per direct labour hour MAC1501/102 Normal machine hours capacity Overhead absorption rate Actual machine hours unsation Over/under absorbed overheads Production Departments Service department Assembly Finishing | Repairs 50 000 R 25,20 50 900 R28 800 h) 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 Madimetja Limited uses a job costing system to measure and trace costs for its fashion clothing. The predetermined manufacturing overhead rate has been calculated as R10,00 per direct labour hour worked. Shirts Pants Socks Direct materials used. R24 000 R19 000 R23 000 Direct labour cost... R20 000 R14 000 R19 000 Direct labour hours... 1 250 850 950 Manufacturing overheads are apportioned based on direct labour hours worked. REQUIRED: Calculate the total manufacturing costs of the shirts, pants and socks respectively. (6) (21) QUESTION 4 (20 marks) (24 minutes) Nozamayedwa (Pty) Ltd manufactures and sells a single product. The following information is available for 2020: Budgeted sales in units are as follows: Quarter Units 7 500 9 000 10 000 12 000 The budgeted selling price per unit is R200. Production requirements per unit of finished product from quarter 2 onwards are as follows: Direct labour. 3 hours at R60 per hour. Direct materials: 4 kg at R50 per kg. Variable manufacturing overheads: R25 per direct labour hour. Fixed manufacturing overheads per quarter are estimated at R75 000. Inventories on hand at the end of quarter 1 were as follows: Direct materials: 4 000 kg at R40 each. Finished goods: 1 500 units at R420 each No opening or closing inventory of work-in-process is kept. The company wishes its closing inventory of finished goods to be equal to 20% of the following quarters budgeted sales in units from quarter 2 onwards. The company policy was updated after quarter 1 to state that the closing inventory of direct materials must be equal to 25% of the current quarter's production requirements in kilograms. Inventories on hand at the end of quarter 1 were as follows: Direct materials: 4 000 kg at R40 each. Finished goods: 1 500 units at R420 each. No opening or closing inventory of work-in-process is kept. The company wishes its closing inventory of finished goods to be equal to 20% of the following quarter's budgeted sales in units from quarter 2 onwards. The company policy was updated after quarter 1 to state that the closing inventory of direct materials must be equal to 25% of the current quarter's production requirements in kilograms. The company uses the first-in-first-out (FIFO) method for inventory valuation. REQUIRED: Prepare the following operational budgets for quarter 2 and quarter 3 respectively (show separate columns for quarter 2 and quarter 3 - no total column is required) 4.1 Sales budget 4.2 Production budget (in unis) 4.3 Direct materials budget 4.4 Direct labour budget 4.5 Production overheads budget QUESTION 5 (15 marks) (18 minutes) Motlalepula Limited financial statements for the years ended 31 December 2018 and 2019 are as follows: Motlalepula Limited Statement of profit or loss and other comprehensive income 2019 2018 Revenue Cost of sales Gross profit Administrative expenses Distribution costs Operating profit Interest paid Profit before tax Income tax expense Net profit for the period 1 300 000 (650 000) 650 000 (100 000) 50 000) 500 000 (55 000 445 000 (133 500) 311 500 1450 000 (750 000) 700 000 (150 000) 100 000 450 000 75 000) 375 000 (112 500) 262 500 MAC1501/102 Motlalepula Limited Statement of financial position 2019 R 2018 ASSETS Non-current assets Property, plant and equipment Current assets Inventories Trade receivables Cash and cash equivalents Total assets 2 470 000 2100 500 1 380 000 1 490 000 500 000 450 000 650 000 800 000 230 000 240 000 3 850 000 3 590 500 2017 2016 R 1 500 in 1000 EQUITY AND LIABILITIES R MAC1501/102 Motlalepula Limited Statement of financial position 2019 R 2018 ASSETS Non-current assets Property, plant and equipment Current assets Inventories Trade receivables Cash and cash equivalents Total assets 2 470 000 1 380 000 500 000 650 000 230 000 3 850 000 2017 2100 500 1 490 000 450 000 800 000 240 000 3590 500 2016 R 1 500 000 220 000 1 720 000 1 000 000 190 500 1 190 500 EQUITY AND LIABILITIES Issued capital Accumulated profits Capital and reserves Non-current liabilities Long term loans Current liabilities Trade payables Short-term interest-bearing) borrowings Current portion of non-current labilities Total equity and liabilities 1 200 000 930 000 300 000 250 000 380 000 3 850 000 1 500 000 900 000 250 000 350 000 300 000 3590 500 years ended REQUIRED 5.1 Use the above information to calculate the following ratios for the 31 December 2019 and 2018/ respectively 5.1.1 Operating profit margin 5.1.2 Return on assets 5.1.3 Current ratio 5.1.4 Quick ratio 5.1.5 Debt ratio 5.2 Comment on the liquidity of the company. 5.3 Briefly discuss the limitations of ratio analyses. ANNEXURE C: Compulsory assignment 01 (second semester) Please note: - This assignment must be submitted by second semester students only. - This assignment consists of 20 multiple-choice questions, which count three marks each. - Fach question must be considered independently unless specific reference is made to information in