QUESTION $2(20$ Marks$)$

$2\mathrm{.}1$

REQUIRED

Use the information provided below to prepare the Income Statement of Disney Enterprises for the

month ended $31$ May $2024$ according to the marginal costing method.

$(14$ marks$)$

INFORMATION

The following information was extracted from the accounting records of Disney Enterprises for the

months ended $30$ April and $31$ May $2024$:

Information for the month ended $30$ April $2024$

There was no inventory of finished goods on $01$ April $2024.$ The sales and production figures were

$5000$ and $6000$ units respectively. Fixed manufacturing and administration costs amounted to

R$128800$ and R$86000$ respectively. Variable manufacturing and variable selling costs amounted to

R$150$ and R$80$ per unit respectively.

Information for the month ended $31$ May $2024$

Units R

Sales for the month $8000$

Selling price per unit $700$

Production for the month $10000$

Finished goods at the beginning of the month $?$

Variable manufacturing costs per unit $180$

Variable selling and administrative costs per unit sold $80$

Fixed manufacturing overhead costs $206000$

Fixed selling and administrative costs $86000$

Additional information

Disney Enterprises uses the FIFO method to value inventories.

$2\mathrm{.}2$

REQUIRED

Calculate the hourly recovery tariff of Margaret from the information provided below.

Commence the calculation of expected productive hours with $365$ days. $(6$ marks$)$

INFORMATION

The basic annual salary of Margaret is R$648000.$ She is entitled to an annual bonus of R$58600.$ Her

employer contributes R$48600$ per annum to her pension fund. She works for $8$ hours per day from

Monday to Friday. She is entitled to $21$ days paid vacation leave. There are $12$ public holidays in the

year $(365$ days$),10$ of which fall on weekdays. Margaret does not work on public holidays.