QUESTION 4 Answer the questions from the information provided. 4.1 Study the ratios given below that were calculated for Project Mel for 2020 and 2019 and provide suitable comments for each one....

Extracted text: QUESTION 4 Answer the questions from the information provided. 4.1 Study the ratios given below that were calculated for Project Mel for 2020 and 2019 and provide suitable comments for each one. INFORMATION 2020 2019 Operating profit margin 20% 14% Trade receivables period 35.78 days 28.75 days Acid test ratio 0.88:1 1.25:1 Return on capital employed 15.63% 21.67% Additional information : The interest rate on loans is 16%. : The credit terms to debtors are 30 days. 4.2 Use the information provided below to calcutate and comment on the following variances for September 2020. Your answers must indicate whether the variance is favourable or adverse. 4.2.1 Direct material usage variance 4.2.2 Variable overheads efficiency variance 4.2.3 Direct labour rate variance 4.2.4 Direct labour efficiency variance.


Extracted text: INFORMATION Carrier Ltd uses the standard costing system at one of its projects. The standards per unit for manufacturing Product Tazz are as follows: Material 4 kilograms at R6 per kilogram Labour 5 hours at R60 per hour Variable overheads R20 per labour hour Normal production 25 000 units per month Actual information for September 2020: Material 82 000 kilograms at R5.80 per kilogram Labour 102 000 hours at R65 per hour Variable overheads R22 per labour hour Production 20 000 units