Question $4$

$[15$ Marks$]$

You are the Cost Accountant of Chester Construction $($Pty$)$ Ltd$,$ and your company manufactures four products $($roof tiles, floor tiles, cement and bricks$)$ using the same machinery and processes. You compiled the following information relating to the existing production period:

$\backslash$table$[[,,\backslash$table$[[$Material cost$],[$per unit$],[$Product$]],\backslash$table$[[$Direct labour$],[$cost per unit$]],,$Machine time$],[$Volume$,R,R,$per unit,,$],[$Roof Tiles,$650,6\mathrm{.}00,0\mathrm{.}60,0\mathrm{.}30,3\mathrm{.}60],[$Floor Tiles,$6050,6\mathrm{.}00,0\mathrm{.}60,0\mathrm{.}30,3\mathrm{.}60],[$Cement$,770,19\mathrm{.}00,2\mathrm{.}40,1\mathrm{.}20,14\mathrm{.}40],[$Bricks$,8450,20\mathrm{.}00,1\mathrm{.}80,1\mathrm{.}80,10\mathrm{.}80]]$

Total production overheads are as follows:

$\backslash$table$[[,R$

Roof Tiles $1\mathrm{.}44$

Floor Tiles $1\mathrm{.}44$

Cement $5\mathrm{.}76$

Bricks $5\mathrm{.}64$

An analysis of production overhead activities for the period revealed the following:

Product No$.$

set$-$ups

No$.$

Material

orders

No$.$

times material

was handled

No$.$

spare parts

Roof Tiles $1133$

Floor Tiles $86137$

Cement $3151$

Bricks $116156$

Required:

Calculate the overhead cost driver rate by filling in the missing figures in the table

below:

Show all calculations and round off calculations$/$answers to $2($two$)$ decimal

places.

Overhead Overhead

cost

$($R$)$

Cost driver Cost driver

value

$($R$)$

Cost driver rate

$($R$)$

Machine

Set$-$ups

Materials $$

ordering

Materials $$

handling

Spare parts