QUESTION $1$

$(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Calculate the net wage of A$.$ Williams for the week ended $13$ January $2024.$

$(4$ marks$)$

INFORMATION

A$.$ Williams is employed by Kingston Manufacturers. The following are her wage details for the week ended $13$ January $2024$:

Remuneration during normal working hours

R$100$ per hour

Normal working week $($Monday to Friday$)$

$8$ hours per day

Pension fund: employee$$s deduction

$7\mathrm{.}5\%$ of normal wage

Pension fund: employer$$s contribution

$10\%$ of normal wage

Income tax deduction

$24\%$ of taxable income

Unemployment insurance fund: employee$$s deduction

$1\%$ of gross wage

Unemployment insurance fund: employer$$s contribution

$1\%$ of gross wage

Remuneration:

Saturdays and overtime from Monday to Friday

$1(1)/(2)$ times the normal rate

Sundays

Double the normal rate

Hours worked:

Sunday

$4$ hours

Monday to Thursday

$8$ hours per day

Friday

$9$ hours

Saturday

$5$ hours

$1\mathrm{.}2$

REQUIRED

Calculate the closing inventory as at $31$ December $2023$ and gross profit for the year ended $31$ December $2023$ if the absorption costing method is used to prepare the income statement.

$(4$ marks$)$

INFORMATION

Mega Manufacturers incurred the following costs for the year ended $31$ December $2023$:

Variable manufacturing costs

R$1872000$

Fixed manufacturing costs

R$1008000$

Variable selling costs

R$576000$

Fixed selling and administrative costs

R$520000$

During $2023,60000$ units were produced. Fifty$-$eight thousand $(58000)$ units were sold at R$70$ each.

$1\mathrm{.}3$

REQUIRED

Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable.

$1\mathrm{.}3\mathrm{.}1$

Material quantity variance

$(4$ marks$)$

$1\mathrm{.}3\mathrm{.}2$

Labour efficiency variance

$(4$ marks$)$

$1\mathrm{.}3\mathrm{.}3$

Variable manufacturing overheads expenditure variance

$(4$ marks$)$

INFORMATION

Redrow Enterprises uses standard costing to exercise control over costs.

The standard variable costs to produce $18000$ units of Product Zap are as follows:

Materials: $72000$ kg at R$9$ per kg

Labour: $18000$ hours at R$80$ per hour

Variable overheads: R$9$ per labour hour

The actual results for May $2024$ in respect of Product Zap are as follows:

$75000$ kg of material were purchased for R$750000.$

$63000$ kg of material were used to produce $15000$ units of Product Zap.

Direct labour costs amounted to R$1248000(16000$ direct labour hours$).$

Variable overheads costs incurred were R$147200.$

$$