QUESTION 5 ( i )The budget of Spot on Target Ltd shows a total contribution margin of $180,000. Sales are budgeted to be $240,000. Budgeted fixed costs amount to $150,000. REQUIRED: ( a )Calculate...

n


QUESTION 5 ( i )The budget of Spot on Target Ltd shows a total contribution margin of $180,000. Sales are budgeted to be $240,000. Budgeted fixed costs amount to $150,000. REQUIRED: ( a )Calculate the break-even point. ( b )What sales revenue would be required for the business to achieve a net profit of $60,000 (before tax)? ( c )Given a tax rate of 30%, what sales revenue would be required to earn a net profit of $63,000 after tax? QUESTION 6 · Nikolic Industries Ltd employs five employees in its factory. All accounts are in a single ledger. The following pay information relates to the week ended 8 June 2016. · Each employee normally works a 40 hour week. Any hours in excess of 40 are paid as overtime at 1 1/2 times the normal hourly rate. · Normal hourly rates are $25 per hour for the supervisor, and $18 per hour for each of the other four employees. · The timesheet summary for the week to 8 June 2016 shows: Employee Details Hours Total G. Boss Supervision 40 D. Dunn Job 222 44 L. Nolen Job 222 25 Job 223 17 42 C. Newitt Job 224 24 Sick leave 8 Maintenance 8 40 M. Rodd Materials store 40 Total 206 · Payment of sick leave was approved for C. Newitt. The company reduces the appropriate accrual/provision for any leave paid. · PAYG tax withheld from all pays for the week totalled $800. There were no other payroll deductions. · Any overtime premium is charged to factory overhead. REQUIRED: ( a )Calculate the total gross payroll and allocate direct and indirect labour costs for the week ended 8 June 2016. ( b )Prepare general journal entries to record: ( i )The allocation of the labour cost as direct and/or indirect. ( ii )The gross factory payroll for the week and the payment of net pays.