View Help Table Design QUESTION 2 Layout (12 marks, 22 minutes) Dream Limited is engaged in the production of olive oil. Subtotals of the budgeted overheads for the first six months of the 20x6 financial year (January to June 20x6) revealed the following: General factory Harvesting Pressing Overhead Variable overhead (R) 2 970 000 5 350 000 1 760 000 Fixed overhead (R) 500 000 1 600 000 1 900 000 Budgeted activity Machine hours 140 000 112 000 Normal capacity Machine hours 200 000 160 000 1. General factory variable overheads are apportioned in line with machine hours worked in each department and general factory fixed overhead are apportioned on the basis of the normal machine hour capacity of the two departments. 2 It has been a long-standing company practice to establish selling prices by applying a mark-up on cost of 45%. The direct material content is R20 per unit. Each unit of the product will take three labour hours (five machine hours) in the harvesting department and four labout hours (six machine hours) in the pressing department Hourly labour rates are R25.00 and R26 respectively. July-December The following actual information relates to the 20x5 financial year. January-June 2005 20X5 Fixed selling and administration costs (dependent on the number of units sold) R456 000 Distribution costs (Fixed and variable) (dependent on number of units sold) R1 342 800 Sales units 40 000 It is expected that the R670 000 R1 057 100 30 000 Required: Assuming that your calculations are prepared on 1 January 20X6, calculate four different cost-plus prices using four different cost bases which may help with the pricing decision for Dream Limited. (12 marks) OF acer S P I R