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Posted: **Tue Jul 05, 2022 11:25 am**

: Nevada Limited Set A Standard Labour Rate Of R32 Per Hour And A Standard Variable Overhead Rate Of R3 80 Per Labour Hour 1 (171.77 KiB) Viewed 11 times

: Nevada Limited Set A Standard Labour Rate Of R32 Per Hour And A Standard Variable Overhead Rate Of R3 80 Per Labour Hour 2 (81.29 KiB) Viewed 11 times

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: Nevada Limited Set A Standard Labour Rate Of R32 Per Hour And A Standard Variable Overhead Rate Of R3 80 Per Labour Hour 3 (117.62 KiB) Viewed 11 times

Nevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 per labour hour. Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurred was R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours. Question 3 3.2 Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value. (4 marks) (4 marks)
3.3 Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even. (4 marks) (4 marks) (4 marks)
Question 3 Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value. Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. How many units must be sold if the company wishes to earn a net profit of R298 920. 3.2 3.3 3.4 3.5 Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even. INFORMATION 1. Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission R1 200 2 400 units R288 R192 (4 marks) (4 marks) (4 marks) R96 (4 marks) (4 marks) R216 960 5% R144 000