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5 marksLabour Costing and Remuneration

CAPE Accounting Unit 2 · 2012 · Paper 2 · Question 1(d)(i)

Cal's Fast Food prepares luxury and standard sandwiches. Present annual production is 300 000 units of luxury sandwiches and 450 000 units of standard sandwiches. Piece rate per sandwich is 0.25 for luxury and 0.18 for standard.

Calculate the cost of producing 300 000 units of luxury sandwiches and 450 000 units of standard sandwiches under the piece rate system.

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Other parts of this question

  1. 1(a)Copy and complete the table to show the differences between Cost and Management Accounting and Financial Accounting using the six headings provided: Users of…[6 marks]
  2. 1(b)(i)Classify sales commissions as EITHER fixed OR variable in relation to the number of units produced and sold.[1 mark]
  3. 1(b)(ii)Classify advertising as EITHER fixed OR variable in relation to the number of units produced and sold.[1 mark]
  4. 1(b)(iii)Classify packaging costs as EITHER fixed OR variable in relation to the number of units produced and sold.[1 mark]
  5. 1(b)(iv)Classify CDs as EITHER fixed OR variable in relation to the number of units produced and sold.[1 mark]
  6. 1(b)(v)Classify salaries of customer support personnel as EITHER fixed OR variable in relation to the number of units produced and sold.[1 mark]
  7. 1(b)(vi)Classify property taxes on the general offices as EITHER fixed OR variable in relation to the number of units produced and sold.[1 mark]
  8. 1(c)(i)Calculate the cost of finished goods manufactured.[2 marks]
  9. 1(c)(ii)Calculate the cost of goods sold.[2 marks]
  10. 1(d)(ii)Calculate the total number of hours worked during summer.[5 marks]
  11. 1(d)(iii)Calculate the overtime hours worked per week during the summer.[3 marks]
  12. 1(d)(iv)Calculate the additional pay for labour over the 8 weeks of the summer.[3 marks]
  13. 1(d)(v)Calculate the annual wages payable under the proposed system.[3 marks]

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