QUESTION $1(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Calculate Mary$$s earnings for $31$ October $2023$ using the straight piecework wage incentive scheme.

$(4$ marks$)$

INFORMATION

Mary is employed by Menton Manufacturers to sew dresses. The standard time to sew one dress is $40$

minutes. She is paid R$120$ per hour and the normal working time is $8$ hours per day. If she sews more than

her quota, she receives $1\mathrm{.}5$ times the hourly rate on the additional output. On $31$ October $2023$ she sewed

$18$ dresses.

$1\mathrm{.}2$

REQUIRED

Calculate the net salary of H$.$ Gordon for December.

$(4$ marks$)$

INFORMATION

H$.$ Gordon$$s basic annual salary is R$240000.$ He receives an annual bonus of $80\%$ of his basic monthly

salary, payable in December each year. His pension deduction is $8\%$ of the basic salary and income tax is

levied at $20\%$ on his taxable income.

$1\mathrm{.}3$

REQUIRED

Calculate the economic order quantity for the year.

$(4$ marks$)$

INFORMATION

Suntan Limited produces a product which has a steady monthly demand of $4000$ units. The product requires

a component that is purchased from a supplier at R$20$ per unit. The ordering cost is R$1\mathrm{.}20$ per order. The

holding cost is $10\%$ of the unit purchase price.

$1\mathrm{.}4$

REQUIRED

Calculate the following variances from the information provided below. In each case also state whether the

variance is favourable or unfavourable.

$1\mathrm{.}4\mathrm{.}1$ Labour rate variance $(2$ marks$)$

$1\mathrm{.}4\mathrm{.}2$ Labour efficiency variance $(3$ marks$)$

$1\mathrm{.}4\mathrm{.}3$ Total labour variance without using the labour rate variance and labour efficiency

variance. $(3$ marks$)$

INFORMATION

Raleigh Enterprises manufactures bicycles. During the year $3000$ bicycles were produced. The actual labour

time was $28000$ hours at a total cost of R$2660000.$

Raleigh Enterprises had the following labour standard for the $4000$ bicycles that it expected to produce during

the year:

$9$ hours per unit at R$90$ per hour

QUESTION $2(20$ Marks$)$

REQUIRED

Use the information given below to prepare the Income statement of Kendall Manufacturers for October $2023$

using the following methods:

$2\mathrm{.}1$ Marginal costing $(10$ marks$)$

$2\mathrm{.}2$ Absorption costing. $(10$ marks$)$

INFORMATION

The following information was provided by Kendall Manufacturers for the only product produced during

October $2023$:

Opening inventory Nil

Number of units manufactured $5000$

Sales R$4200000$

Selling price per unit R$1000$

Variable manufacturing costs per unit R$425$

Fixed manufacturing overhead cost R$325000$

Variable selling cost per unit R$80$

Fixed selling cost R$175000$

Fixed administrative cost R$200000$

QUESTION $3(20$ Marks$)$

$3\mathrm{.}1$

REQUIRED

Calculate the following from the information provided below:

$3\mathrm{.}1\mathrm{.}1$ Break$-$even value using the marginal income ratio $(4$ marks$)$

$3\mathrm{.}1\mathrm{.}2$ Margin of safety $($in units$)(4$ marks$)$

$3\mathrm{.}1\mathrm{.}3$ Break$-$even quantity if a sales commission of $20\%$ is introduced. $(4$ marks$)$

INFORMATION

Ascot $($Pty$)$ Ltd manufactures a single product and the following budget has been produced by the

management accountant:

Sales at R$250$ per unit R$1000000$

Variable costs R$600000$

Fixed manufacturing, administrative and marketing costs R$250000$

All the units produced are expected to be sold.

$3\mathrm{.}2$

REQUIRED

Use the information provided below to answer the following questions independently:

$3\mathrm{.}2\mathrm{.}1$ If Kempster Limited decides on a profit objective of R$400000,$ calculate the target sales

volume. $(4$ marks$)$

$3\mathrm{.}2\mathrm{.}2$ Calculate the total Marginal Income and Profit$/$Loss if the company decides to reduce

the selling price to R$28$ per unit. $(4$ marks$)$

INFORMATION

Kempster Limited expects to incur the following costs to produce and sell $20000$ units of its product at R$30$

each:

Variable manufacturing cost R$14$ per unit

Fixed manufacturing cost R$100000$

Variable marketing cost $20\%$ of sales

Fixed marketing and administrative cost R$40000$

QUESTION $4(20$ Marks$)$

REQUIRED

Use the information provided by Empire Traders to prepare the following for March and April $2024$:

$4\mathrm{.}1$ Debtors Collection Schedule $(4$ marks$)$

$4\mathrm{.}2$ Cash Budget. $(16$ marks$)$

INFORMATION

The following information was provided by Empire Traders:

$1.$ Empire Traders expects to have a favourable bank balance of R$60000$ on $28$ February $2024.$

$2.$ Budgeted sales figures for $2024$ are as follows:

January February March April

Cash sales R$320000$ R$370000$ R$310000$ R$250000$

Credit sales R$370000$ R$390000$ R$320000$ R$300000$

$3.$ Thirty percent $(30\%)$ of the cash sales is to informal traders who are entitled to a discount of $10\%.$

Collections from debtors are usually as follows:

$80\%$ is collected in the month after the sale.

$20\%$ is collected two months after the sale.

$4.$ Purchases of inventory are expected to be as follows:

January February March April

Total purchases R$410000$ R$460000$ R$400000$ R$380000$

$5.$ Sixty percent $(60\%)$ of the purchases is for cash to take advantage of a discount of $15\%.$ The balance is

purchased on credit. Creditors are paid two months after the month of purchase. $($Separate entries for

cash and credit payments are required.$)$

$6.$ The proprietor$$s monthl