Question 1 Jse the information provided below to answer the following questions: 1.1 Calculate the predetermined overhead rate according to each of the following bases: Product unit basis 1.1.1 Labour hour basis Primary cost basis (expressed to two decimal places) 1.1.2 1.1.3 1.2 1.2.1 1.2.2 1.3 Calculate the manufacturing cost per unit using the following bases: Product unit basis Labour hour basis Determine the value of the over-applied or under-applied overheads. INFORMATION The following is the budget of a manufacturing entity that produces only one type of product: Budgeted direct materials cost Budgeted labour cost Budgeted manufacturing overheads: Fixed Variable Budgeted direct labour hours Budgeted machine hours Budgeted production Additional information Total R? R? R360 000 R240 000 R120 000 ? hours ? hours 30 000 units The actual number of units produced was 32 000 and the actual overheads amounted to R400 000. Per unit R30 R24 ? ? ? 10 hours 7.5 hours

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 1
Use the information provided below to answer the following questions:
1.1 Calculate the predetermined overhead rate according to each of the following bases:
1.1.1 Product unit basis
1.1.2
1.1.3
1.2
1.2.1
1.2.2
1.3
Labour hour basis
Primary cost basis (expressed to two decimal places)
Calculate the manufacturing cost per unit using the following bases:
Product unit basis
Labour hour basis
Determine the value of the over-applied or under-applied overheads.
INFORMATION
The following is the budget of a manufacturing entity that produces only one type of product:
Budgeted direct materials cost
Budgeted labour cost
Budgeted manufacturing overheads:
Fixed
Variable
Budgeted direct labour hours
Budgeted machine hours
Budgeted production
Additional information
Total
R?
R?
R360 000
R240 000
R120 000
? hours
? hours
30 000 units
The actual number of units produced was 32 000 and the actual overheads amounted to R400 000.
Per unit
R30
R24
?
?
?
10 hours
7.5 hours
Transcribed Image Text:Question 1 Use the information provided below to answer the following questions: 1.1 Calculate the predetermined overhead rate according to each of the following bases: 1.1.1 Product unit basis 1.1.2 1.1.3 1.2 1.2.1 1.2.2 1.3 Labour hour basis Primary cost basis (expressed to two decimal places) Calculate the manufacturing cost per unit using the following bases: Product unit basis Labour hour basis Determine the value of the over-applied or under-applied overheads. INFORMATION The following is the budget of a manufacturing entity that produces only one type of product: Budgeted direct materials cost Budgeted labour cost Budgeted manufacturing overheads: Fixed Variable Budgeted direct labour hours Budgeted machine hours Budgeted production Additional information Total R? R? R360 000 R240 000 R120 000 ? hours ? hours 30 000 units The actual number of units produced was 32 000 and the actual overheads amounted to R400 000. Per unit R30 R24 ? ? ? 10 hours 7.5 hours
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