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4 marksLabour Costing and Remuneration

CAPE Accounting Unit 2 · 2014 · Paper 2 · Question 1(c)(ii)

Roadside Ltd pays basic rate $6 per hour, overtime at time and a quarter for evenings, and time and a half for weekends. Job X123: 240 normal hours, 51 evening hours, 20 weekend hours. Job X687: 110 normal hours, 30 evening hours, 60 weekend hours.

Calculate the direct labour cost and production overhead chargeable to EACH job where the overtime is worked at the customer's request.

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Other parts of this question

  1. 1(a)(i)List THREE components of 'carrying cost'.[3 marks]
  2. 1(a)(ii)State TWO components of 'ordering cost'.[2 marks]
  3. 1(a)(iii)Calculate the recommended order quantity (E.O.Q.) for the tablets using the formula: \text{E.O.Q.} = \sqrt{\frac{2 D C_o}{C_c}} where D = Annual demand,…[5 marks]
  4. 1(a)(iv)Calculate how many times orders should be placed per year.[2 marks]
  5. 1(a)(v)Calculate the reorder point in units using: \text{Maximum usage} \times \text{maximum lead time}[3 marks]
  6. 1(b)(i)Determine whether the company should continue to purchase the monitors, showing all workings.[5 marks]
  7. 1(b)(ii)If the factory space used for manufacturing monitors could instead be rented out for…[6 marks]
  8. 1(c)(i)Calculate the direct labour cost and production overhead chargeable to EACH job where overtime is worked to meet production targets of the company itself.[5 marks]

More practice: the rest of this paper · more Labour Costing and Remuneration questions · all CAPE Accounting Unit 2 past papers