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3 marksLabour Costing and Remuneration

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

Cal plans to reduce production staff to 12, paying each a monthly salary of 1 000 fixed (12 000 annually), where each employee would work 50 weeks at 40 hours per week and be paid at $6 per hour.

Calculate the annual wages payable under the proposed system.

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  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)(i)Calculate the cost of producing 300 000 units of luxury sandwiches and 450 000 units of standard sandwiches under the piece rate system.[5 marks]
  11. 1(d)(ii)Calculate the total number of hours worked during summer.[5 marks]
  12. 1(d)(iii)Calculate the overtime hours worked per week during the summer.[3 marks]
  13. 1(d)(iv)Calculate the additional pay for labour over the 8 weeks of the summer.[3 marks]

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