80.2K

Verified Solution

Link Copied!

Answer ALL questions. (100 MARKS) QUESTION 1 (20 MARKS) 1.1 REQUIRED Use the information provided below to calculate the economic order quantity (expressed to the next whole number). (4 marks) INFORMATION Savoy Traders intends purchasing 19200 watches at R80 each in the next year. The watches will be sold for R120 each at a steady rate during the year. The cost of placing a single order for the watches amounts to R24. The inventory holding cost amounts to \10 of the unit purchase price. 1.2 REQUIRED Use the information provided below to calculate Brenda's earnings for 13 February 2023 using the straight piecework incentive scheme. (4 marks) INFORMATION Brenda is employed by Hip Manufacturers and is paid R100 per hour. The normal working day is 9 hours. The standard time to produce a product is 6 minutes. If Brenda produces more than her quota, she receives 1.5 times the hourly rate on the additional output. Brenda produced 120 units on 13 February 2023. 1.3 REQUIRED Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable. 1.3.1 Material issue price variance (4 marks) 1.3.2 Material quantity variance (4 marks) 1.3.3 Total material variance, without using the answers from the previous questions. (4 marks) INFORMATION To produce one unit of Product Rap a standard quantity of 4 kilograms of material \\( Y \\) at a standard price of R5 per kilogram is allowed. Expected production per month is 8500 units. The cost figures for September 2022 showed that 35200 kilograms of material Y were purchased at R5.20 per kilogram. 8000 units of Product Rap were produced during September 2022 using 33600 kilograms of material \\( Y \\)

Answer & Explanation Solved by verified expert

See Answer