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

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 12E: a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in...

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