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5 marksLabour Costing and Remuneration

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

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 overtime is worked to meet production targets of the company itself.

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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)(ii)Calculate the direct labour cost and production overhead chargeable to EACH job where the overtime is worked at the customer's request.[4 marks]

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