Zulu Ltd manufactures a single product whose cost structure is given below: Sh Sh Direct materials:...

 

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Zulu Ltd manufactures a single product whose cost structure is given below: Sh Sh Direct materials: Material ABA (2 kg @ Sh 25 per kg) Material BCA (3 litres @ Sh 75 per litre) Direct labour (4 hours @Sh 30 per hour) Variable overheads Fixed overheads Direct materials: Material ABA (78,000 Kg) Material BCA (121,000 Kg) Direct labour (156,000 hours) Variable overheads Fixed overheads Total cost The variable and fixed overheads are absorbed on the basis of the direct labour hours. During the year ended 31 October 2021, the company produced and sold 40,000 units and following costs: Required: a) Material mix and yield variances. b) Variable overhead expenditure and efficiency variances. c) Standard cost card for 40,000 units. Period 1 -23456NORF23 7 8 9 10 11 12 QUESTION TWO The information given below relates to Wapee Ltd. which manufactures a single type of chemical. Overhead processing costs for the last thirteen accounting months (of four weeks each) have been as follows: 13 Overhead cost Sh.'000' 770 820 810 830 960 900 940 950 940 870 800 820 790 50 150 160 170 225 200 170 200 200 Output '000' tonnes 120 180 160 140 150 140 Sh 205,000 6,800,000 275 120 80 25 500 Sh 7,005,000 4,900,000 3,000,000 900,000 15,805,000 (8 marks) (8 marks) (4 marks) (Total: 20 marks) urred the Required: a) Devise a formular to assist in predicting the overhead budget for the thirteen months. b) Citing relevant examples, distinguish between joint products and by-products. (5 marks) (5 marks) (Total: 10 marks) Zulu Ltd manufactures a single product whose cost structure is given below: Sh Sh Direct materials: Material ABA (2 kg @ Sh 25 per kg) Material BCA (3 litres @ Sh 75 per litre) Direct labour (4 hours @Sh 30 per hour) Variable overheads Fixed overheads Direct materials: Material ABA (78,000 Kg) Material BCA (121,000 Kg) Direct labour (156,000 hours) Variable overheads Fixed overheads Total cost The variable and fixed overheads are absorbed on the basis of the direct labour hours. During the year ended 31 October 2021, the company produced and sold 40,000 units and following costs: Required: a) Material mix and yield variances. b) Variable overhead expenditure and efficiency variances. c) Standard cost card for 40,000 units. Period 1 -23456NORF23 7 8 9 10 11 12 QUESTION TWO The information given below relates to Wapee Ltd. which manufactures a single type of chemical. Overhead processing costs for the last thirteen accounting months (of four weeks each) have been as follows: 13 Overhead cost Sh.'000' 770 820 810 830 960 900 940 950 940 870 800 820 790 50 150 160 170 225 200 170 200 200 Output '000' tonnes 120 180 160 140 150 140 Sh 205,000 6,800,000 275 120 80 25 500 Sh 7,005,000 4,900,000 3,000,000 900,000 15,805,000 (8 marks) (8 marks) (4 marks) (Total: 20 marks) urred the Required: a) Devise a formular to assist in predicting the overhead budget for the thirteen months. b) Citing relevant examples, distinguish between joint products and by-products. (5 marks) (5 marks) (Total: 10 marks)

Answer rating: 100% (QA)

a Material mix and yield variances 1 Material Mix Variance Material ABA Standard quantity 2 kgunit Standard price Sh 25kg Actual quantity 78000 kg Act... View the full answer