As a way of embracing the importance of Work Integrated Learning (“WIL”), the University of Namibia (“UNAM”) has partner

[answerhappygod]

As a way of embracing the importance of Work Integrated Learning
(“WIL”), the University of Namibia (“UNAM”) has partnered with
various corporate partners. This has been done in order to ensure
that UNAM students are accorded an opportunity to do internships as
a way of tuning their theory into practice. Since the number of
placements are limited, this opportunity is done through a
competitive process carried out by each faculty before a student is
placed. So, only students who could demonstrate practical business
acumen usually secure such a rare opportunity. Given the students
various intended areas of specialty, each application is handled
differently.
Two students from your cohort who are originally from the same
town (“Anna and Simon”) had recently submitted their applications
for placement consideration. The following scenario was presented
to them:
Assume that the two of you have recently qualified as auditors.
As a way of reducing unemployment, you are thinking of opening up a
small firm in your home town. After a review of active firms in
other small towns, and based on interviews conducted on the demand
of audit services, you felt you had enough information to go ahead
with the start-up under the name AnnaSimon & Associates. Since
this is a new establishment, your workforce currently is currently
made up of the two of you as partners and a team of five employees.
Thus, you opted that your firm would operate using two direct cost
categories (Partners labour and Audit clerk labour). Accordingly,
there would also be two indirect cost categories, namely: clerical
labour and general administration support. These would yield more
accurate job costs. Budgeted information for operations in 2021 is
as follows:
Partners labour
Audit clerk labour
Number of employees
2
5
Hours of billable time per employee
400
400
Total compensation (per employee) (N$)
420 000
120 000
Budgeted information for the two indirect cost categories is as
follows:
Pupkewitz Ltd
O & L Group
Total costs (N$)
648 000
144 000
Cost allocation base
Partner labour hours
Audit clerk labour hours
No change was recorded in respect of the budgeted direct labour
rates. The actual data during the year 2021 were as follows:
Pupkewitz Ltd
O & L Group
Partners
10
6
Audit clerk
16
25
1.1 Based on the given information, the budgeted 2021 rates for
partners and audit clerk, respectively, were (6
Marks):
A. N$800 for Partners and N$2000 for Audit clerk
B. N$2000 for Partners and N$800 for Audit clerk
C. N$1050 for Partners and N$300 for Audit clerk
D. N$300 for Partners and N$1050 for Audit clerk
E. None of the answers is correct
2. Based on the given information, the budgeted 2021 indirect
rates for partners and audit clerk, respectively,
were (2 Marks):
A. N$800 for Partners and N$2000 for Audit clerk
B. N$1050 for Partners and N$300 for Audit clerk
C. N$810 for Partners and N$72 for Audit clerk
D. N$72 for Partners and N$810 for Audit clerk
E. None of the above
3. Based on the given information, the total cost of the two
jobs performed for Pupkewitz Ltd and O & L Group, respectively,
were (7 Marks):
A. N$68 820 for Partners and N$66 960 for Audit clerk
B. N$66 980 for Partners and N$68 820 for Audit clerk
C. N$45 000 for Partners and N$50 100 for Audit clerk
D. N$50 100 for Partners and N$45 000
E. None of the above