QUESTION 1

1. Use the information provided below to calculate the hourly recovery tariff (expressed in rands and cents) of Samantha. (4 marks)

INFORMATION

The annual basic salary of Samantha is R700 000. She is entitled to an annual bonus of R60 000. Her employer contributes R52 000 per annum to her pension fund. She works for 8 hours per day from Monday to Friday. She is entitled to 28 days paid vacation leave. There are 12 public holidays in the year (365 days), 8 of which fall on weekdays.

2. Calculate Sams remuneration for the first working week of March 2022 from the following information. (4 marks)

INFORMATION

The normal wage of Sam is R300 per hour and his normal working week is 40 hours. The standard production for employees is 375 units per hour. During the first working week (40 hours) of March 2022, Sam produced 16 125 units. According to the Halsey bonus system, a bonus of 50% of the time saved is given to employees.

1.3 From the information provided below complete the table using the weighted average cost method of inventory valuation. Express the average cost per unit in rands and cents.

	Purchases			Issues and returns			Balance
Date	Quantity	Price	Amount	Quantity	Price	Amount	Quantity	Price	Amount

The following transactions of Jozini Manufacturers took place during March 2021 in respect of a component used in production:

Date	Transactions
01	Opening inventory	300 units @ R22 per unit
08	Purchased from a supplier	700 units @ R24 per unit
13	Issued to production	600 units
14	Purchased from a supplier	1 600 units @ R26 per unit
15	Returned to the supplier	200 units (purchased on 14 March 2021)

1.4 Use the information provided below to calculate the following variances and, in each case, provide a possible reason for the favourable or unfavourable variance.

1.4.1 Material quantity variance (4 marks)

1.4.2 Labour rate variance (4 marks)

INFORMATION

Optic Manufacturers set the following standards for Product A:

Direct material	45 kg at R23 per kg
Direct labour	7.5 hours at R27 per hour
Production	28 000 units per month

Actual figures of Optic Manufacturers for Product A for March 2022 are as follows:

Production	27 500 units
Direct material used	1 296 000 kg at R22 per kg
Direct labour incurred	210 000 hours at a total cost of R5 880 000