Question
You are the cost and management accountant of Lawrence Group of Mineral (Pty) Ltd and you compiled the following information relating to your companys operations
You are the cost and management accountant of Lawrence Group of Mineral (Pty) Ltd and you compiled the following information relating to your companys operations for the second quarter of 2023 (1 April to 31 June): WIP balances on 1 April 2023: Job 542 R 3 850 Job 543 R 2 330 Costs incurred and other data for the third quarter: Job Material costs Labour costs Machine hours 542 R 850 R 580 30 hrs 543 R 340 R 720 45 hrs 544 R 6 400 R 3 700 210 hrs 545 R 3 150 R 2 650 85 hrs Factory overheads are applied to jobs based on machine hours. Budgeted factory overheads for 2023 were R 900 000 while budgeted machine hours for the same period were 60 000 hours. Jobs 542 (60 units), 543 (200 units) and 544 (2 000 units) were completed.
1.Which of the following formulas do you use to calculate the rate per machine hour?
a) Budgeted overheads/Budgeted machine hours
b) Budgeted overheads/Budgeted direct labour hours
c) Budgeted overheads/Budgeted overhead hours
d) Budgeted overheads/Budgeted direct material hours
2. What is the rate per machine hour?
A) R10 per machine hour
B) R5 per machine hour
C) R15 per machine hour
D) R20 per machine hour
3. Which of the following formula do you use to calculate the overheads applied?
A) Machine hours per job Direct labour hours per job
B) Machine hours per job Direct material hours per job
C) Machine hours per job Rate per hour
D) Machine hours per job Cost of sales per hour
4. Determine the amount of the overhead applied to job 542
A)R 250
B)R 550
C)R 350
D) R 450
5 What is the overheads amount applied to job 543
A) R 575
B) R 675
c) R 475
d) R 875
6. Determine the amount of the overhead applied to job 544
A)R 2 150
B)R 4 150
C) R 3 150
D) R 5 150
7. Calculate the overheads amount applied to job 545
A) R 1 275
B) R 3 275
C) R 2 275
D) R 4 275
8.What is the total amount of work-in-process on 1 April 2023?
A) R 5 180
B) R 6 180
C) R 4 180
D) R 7 180
9. Determine the total direct material cost amount for all jobs
A) R 9 740
B)R 10 740
C) R 11 740
D) R 13 740
10.What is the total direct labour cost amount for all jobs?
Group of answer choices
R 5 650
R 8 650
R 6 650
R 7 650
11. Determine the applied factory overheads cost for all jobs
Group of answer choices
A) R 5 550
B) R 3 550
C) R 6 550
D) R 2 550
12. What is the total cost of job 542?
A) R 3 730
B) R 7 730
C) R 5 730
D) R 8 730
13. Calculate the total cost of Job 545?
A ) R 5 075
B) R 9 075
C) R 7 075
D) R 3 075
14. Calculate the total cost of all jobs
Group of answer choices
A) R 30 120
B) R 28 120
C) R 32 120
D) R 26 120
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