TM$-$V$\mathrm{.}3-29012024$Question $1[20$ Marks$]$You are the Cost Accountant of Prestige 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 theRoof Tiles $6506\mathrm{.}000\mathrm{.}600\mathrm{.}30$ Floor Tiles $60506\mathrm{.}000\mathrm{.}600\mathrm{.}30$ Cement $77019\mathrm{.}002\mathrm{.}401\mathrm{.}20$existing production period:$3\mathrm{.}603\mathrm{.}6014\mathrm{.}4010\mathrm{.}80$ Product Volume Material cost per unit R Direct labour cost per unit R Machine time per unit Labour cost per unit R Bricks $845020\mathrm{.}00$Total production overheads are as follows:Machine department Set$-$up costsOrdering costs materials$1\mathrm{.}801\mathrm{.}80$ R $44950535023502$HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$ Handling materials $9150$ Administration costs spare parts $10350$Overhead costs are allocated to products using a machine hour rate of R $5\mathrm{.}80$ per hour, giving the following overhead cost per unit: Product R Roof Tiles Floor Tiles Cement BricksAn analysis of production overhead activities for the period revealed the following:$1\mathrm{.}441\mathrm{.}445\mathrm{.}765\mathrm{.}64$ ProductNo.set$-$upsNo.Material ordersNo.times material was handledNo.spare parts Roof Tiles $11$Floor Tiles $86$Cement $31$Bricks $11615631353713$ HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$Required:Calculate the overhead cost driver rate by filling in the missing figures in the table below:$($Show all calculations as correct calculations will be awarded a mark.$)$ OverheadOverhead costCost driverCost driver valueCost driver rate$($Round$-$off to two $(2)$ decimals$)$ R$($Total$)$ MachineMachine hours Set$-$ups Materials orderingNo. of set$-$ups No$.$ of material orders Materials handlingNo. of times handled Spare partsNo. of spare parts $4$ HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$Question $2[44$ Marks$]$Thabo Civil Engineers Pty Ltd has been in the construction business for the past $17$ years and is considered one of the major players in the industry. They are currently part of a team of four major construction companies engaged in a massive low$-$to$-$ medium$-$income housing project, in which their part is to lay and complete the foundation for each house and leave the rest to other team members. This project commenced on $3$ January $2024.$As the project cost accountant of Thabo Civil Engineers Pty Ltd$,$ you have recorded the following monthly and annual cost figures with respect to this housing project:$5$HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$ On average, your company completes $350$ foundations per month and, in the process, uses $13(50$kg$)$ bags of cement on each foundation, and each $50$kg bag costs R$80.$The cost of direct labour is R $22500$ per foundation completed.Your companys site supervisor is paid R $54000$ per month.Four different types of earth moving machinery used by your company areleased at R $250000$ each per month.Each foundation completed is subject to a quality check at a cost of R $12500$Each foundation completed uses $8500$ bricks at a cost of R $2100$ per $1000$bricks.A purchasing agent used to source the best prices for construction materialsfor your company is paid a commission of R $16000$ per monthYour company is using this housing project to advertise itself to potentialcustomers at a cost of R $25400$ per monthAn on$-$site administrative office has been set up$,$ and the total monthly salarybill for the six people running it amounts to R $85000$The annual insurance bill paid by your company for this project amounts to R $135700$ A $10$ litre container of paint is used on each foundation at a cost of R $1600$per containerRequired:Calculate the following annual figures for your company: $2\mathrm{.}1$ Direct labour per year$2\mathrm{.}2$ Direct material per year$2\mathrm{.}3$ Construction overheads per year$2\mathrm{.}4$ Total non$-$construction costs per year$(4$ Marks$)(12$ Marks$)(22$ Marks$)(6$ Marks$)6$ HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$Question $3[36$ Marks$]$You are employed as the cost accountant of Thabani Civil Engineers Pty Ltd$,$ and your company trades in a single, homogeneous product. On $1$ August $2020,$ there were $5500$ units with a selling price of R $4$ each $($after marking these goods up with $25\%$ on cost$)$ on hand. Your company uses the perpetual inventory system.The following transactions were carried out by your company during the month of August $2020$:Date Transactions$4$ Purchased $2500$ units at R $3\mathrm{.}70$ each. $10$ Sold $6500$ units at R $6\mathrm{.}20$ each$\mathrm{.}16$ Purchased $1300$ units at R $3\mathrm{.}80$ each. $20$ Purchased $5000$ units at R $3\mathrm{.}50$ each. $26$ Sold $5500$ units at R $6\mathrm{.}20$ each$\mathrm{.}30$ Purchased $2000$ units at R $3\mathrm{.}85$ each.Required:Calculate each of the following using the FIFO method:$3\mathrm{.}1$The value of the closing inventory on $31$ August $20203\mathrm{.}2$The sales revenue for August $20203\mathrm{.}3$The cost of sales for August l $20203\mathrm{.}4$The gross profit for August $2020($Ignore VAT$).(25$ marks$)(3$ marks$)(6$ marks$)(2$ marks$)7$ HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$