Answer Happy

Use the information provided to answer the questions. Calculatethe annual economic order quantity from the information providedbelow. (4 marks) INFORMATION GM Electronics expects to sell 800alarm systems each month of 2022 at R4 000 each. The cost price ofeach alarm system is R2 000. The inventory holding cost of an alarmsystem is 1% of the unit cost price. The cost of placing an orderfor the alarm systems is estimated at R60. 1.1 Study theinformation provided below and calculate the hourly recovery tariffper hour (expressed in rands and cents) of Martha. (4 marks)INFORMATION The basic annual salary of Martha is R576 000. She isentitled to an annual bonus of 90% of her basic monthly salary. Heremployer contributes 8% of her basic salary to her pension fund.She works for 45 hours per week (from Monday to Friday). She isentitled to 21 days paid vacation leave. There are 12 publicholidays in the year (365 days), 8 of which fall on weekdays. 1.2Use the information provided below to calculate Samantha’sremuneration for 17 March 2022. (4 marks) INFORMATION Samantha’snormal wage is R300 per hour and her normal working day is 8 hours.The standard production time for each employee is 4 units for every30 minutes. On 17 March 2022, Samantha’s production was 76 units.Using the Halsey bonus system, a bonus of 50% of the time saved isgiven to employees. 1.3 Calculate the earnings of G. Henry usingthe straight piecework incentive scheme from the informationprovided below. (4 marks) INFORMATION G. Henry is employed by RoyalManufacturers and is paid R250 per hour. His normal working day is9 hours. The standard time to produce a product is 5 minutes. If G.Henry produces more than his quota, he receives 1½ times the hourlyrate on the additional output. G. Henry produced 132 units for theday. 1.4 From the information provided below complete the tableusing the FIFO method of inventory valuation: 1.5 (4 marks)Purchased Issues and returns Balance Date Quantity Price AmountQuantity Price Amount Quantity Price Amount The followingtransactions of Franco Manufacturers took place during March 2022:Date Transaction Units Price per unit 01 Opening inventory 1 600R3.50 05 Purchased from a supplier 600 R4.00 12 Purchased from asupplier 1 300 R4.50 24 Purchased from a supplier 1 600 R5.00 16Issued to production 1 800 ? 28 Issued to production 1 300 ?Question 2 Answer the questions from the information provided. Usethe information given below to prepare the Income Statement forMarch 2022 according to the absorption costing method. 2.1 (12marks) INFORMATION The following information was extracted from theaccounting records of Alpha Enterprises for the month ended 31March 2022: Sales 3 200 units Selling price per unit R100 Finishedproducts on 01 March 2022 400 units Products manufactured duringthe month 3 600 units Variable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12 Fixedmanufacturing costs R25 200 Fixed selling and administrative costsR12 400 Additional information The variable manufacturing cost perunit and total manufacturing cost per unit of the finished goods on01 March 2022 was R21.60 and R26.20 respectively. Use theinformation provided below to calculate the following manufacturingvariances for March 2022. Note: Each answer must state whether thevariance is favourable or unfavourable. 2.2 2.2.1 Labour ratevariance (2 marks) 2.2.2 Labour efficiency variance (2 marks) 2.2.3Variable overheads efficiency variance (2 marks) Variable overheadsexpenditure variance (2 marks) INFORMATION Nevada Limited set astandard labour rate of R32 per hour and a standard variableoverhead rate of R3.80 per labour hour. Actual hours worked forMarch 2022 were 4 910 at a cost of R149 264. The actual variableoverhead cost incurred was R19 640. The standard allowance oflabour hours for the output achieved was 5 000 hours. 2.2.4Question 3 Study the information given below and answer each of thefollowing questions independently: 3.1 Calculate the total MarginalIncome and Net Profit/Loss if all the tables are sold. (4 marks)3.2 Use the marginal income ratio to calculate the break-evenvalue. (4 marks) Calculate the new total Marginal Income and NetProfit/Loss, if an increase in advertising expense by R100 000 isexpected to increase sales by 400 units. 3.3 (4 marks) 3.4 How manyunits must be sold if the company wishes to earn a net profit ofR298 920. (4 marks) Based on the expected sales volume of 2 400units, determine the sales price per unit (expressed in rands andcents) that will enable the company to break even. (4 marks)INFORMATION Samcor Limited manufactures tables. The followinginformation was extracted from the budget for the year ended 30June 2022: 1. Total production and sales 2 400 units 2. Sellingprice per table R1 200 3. Variable manufacturing costs per table:Direct material R288 Direct labour R192 Overheads R96 4. Fixedmanufacturing overheads R216 960 5. Other costs: Fixed marketingand administrative costs R144 000 Sales commission 5% 3.5 Question4 Use the information provided below to prepare the following forJanuary and February 2023: 4.1 Debtors Collection Schedule (4marks) Cash Budget (16 marks) INFORMATION The following informationwas provided by Intel Enterprises: 1. The bank balance on 31December 2022 is expected to be R40 000 (unfavourable). 2. Creditsales are expected to be as follows: December 2022 January 2023February 2023 R576 000 R540 000 R648 000 3. Credit sales usuallymake up 40% of the total sales. Cash sales make up the balance.Cash customers receive a 10% discount. 4. Credit sales are normallycollected as follows: * 30% in the month in which the transactiontakes place, and these customers are entitled to a 5% discount. *65% in the following month The rest is usually written off as baddebts. 5. Budgeted purchases of inventory are as follows: December2022 January 2023 February 2023 R1 000 000 R800 000 R920 000 4.2 6.Fifty percent (50%) of the purchases are for cash. The remainder ispaid in the month after the purchase. 7. The monthly salariesamount to R150 000. Salaries are expected to increase by 9% witheffect from 01 February 2023 for those employees who presently makeup 80% of the salary bill. The salaries of the remaining 20% areexpected to increase by 6%. 8. Interest at 18% per annum on theloan balance is paid at the end of each month. The loan balance on31 December 2022 was R400 000 and a capital repayment of R100 000will be made on 01 February 2023. 9. Part of the building is subletto a tenant and rent is collected monthly. The lease agreement forthe year ended 31 January 2023 reflected the rental as R180 000 perannum. The rental will increase by 10% with effect from 01 February2023. 10. Other operating expenses are budgeted at R40 000 permonth. This amount includes R5 000 for depreciation. Operatingexpenses are paid for in the month in which they are incurred.Question 5 Use the information provided to answer the questions.Use the information provided below to calculate the following.Where applicable, use the present value tables provided inAPPENDICES 1 and 2 that appear after QUESTION 5. 5.1 5.1.1Calculate the Payback Period of Project A (expressed in years,months and days). (3 marks) Calculate the Accounting Rate of Return(on average investment) of Project B (expressed to two decimalplaces). 5.1.2 (5 marks) 5.1.3 Calculate the Net Present Value ofeach project (with amounts rounded off to the nearest Rand). (6marks) Use your answers from question 5.1.3 to recommend theproject that should be chosen. Motivate your choice. 5.1.4 (1marks) INFORMATION Zeda Enterprises has the option to invest inmachinery in projects A and B but finance is only available toinvest in one of them. You are given the following projected data:Project A Project B Initial cost R300 000 R300 000 Scrap value R40000 0 Depreciation per year R52 000 R60 000 Net profit Year 1 R20000 Year 2 R30 000 Year 3 R50 000 Year 4 R60 000 Year 5 R10 000 Netcash flows Year 1 R90 000 Year 2 R90 000 Year 3 R90 000 Year 4 R90000 Year 5 R90 000 Additional information The discount rate used bythe company is 12%. APPENDIX 1: PRESENT VALUE OF R1 Use theinformation provided below to calculate the Internal Rate of Return(expressed to two decimal places) using interpolation. (5 marks)INFORMATION A machine with a purchase price of R1 200 000 isestimated to eliminate manual operations by R400 000 per year. Themachine is expected to have a useful life of four years.