Question

Question 1 Total 6 000 The following information relates to GC Company for the current year: Common Special R Units produced 2000 Direct material cost R60 000 R100 000 160 000 Direct labour hours 6 000 4 000 Direct labour costs R60 000 RBO 000 140 000 Number of set-ups 40 40 Number of design changes 12 8 Overhead cost Set up 80 000 Design changes 60 000 Other 140 000 Total manufacturing costs 530 000 Required Calculate the cost per unit for each product when ABC is used to calculate overhead rates with the following cost drivers Activity Cost driver Set up costs Number of set ups Design changes Nun ber of designs changes Other Direct labour hours (15) 0 0 Question 2 Jeb uses a job costing system to charge out costs for jobs completed. Job number 49 was completed on 28 April with 1 500 units produced for a customer, M. Gidy. Day 1: Material consumed per requisition 201A amounted to R400 Day 1: An artisan worked 4 hours Day 2: Material consumed per requisition 2016 amounted to R300 Day 5: An artisan woriced 6 hours Day 9: An artisan plus a labourer worked 3 hours Day 11: An artisan plus a labourer worked 8 hours Labour overheads of 35% are added to the total cost. Material overheads of 25% are added to the total cost. Artisan rate is R75 per hour. Labourer rate is R25 per hour. Required Calculate the total job cost and the cost per unit. Present your answer in column form. (20) Cost and Management Accounting / CICG / Page 97