Sales Data Cardboard Plain White Blue Margin Mark-up on cost 15% 25% 20% Competitors prices R46.26 R26.12 R36.50 Required: (Show all your workings and round off the rates to 2 decimal places) 1....

Extracted text: Sales Data Cardboard Plain White Blue Margin Mark-up on cost 15% 25% 20% Competitors prices R46.26 R26.12 R36.50 Required: (Show all your workings and round off the rates to 2 decimal places) 1. Calculate the prime cost of single cardboard paper, plain white paper and blue margin paper.


Extracted text: Consider the following information by WriteUps Limited, a company that manufactures cardboard paper, plain white paper and blue margin paper. WriteUps Limited uses an Activity-Based Costing System in allocating overhead costs to the various paper products it manufactures. The following table was given to you by your costing clerk: Prime costs and usage per pad of the product Cardboard Plain White Blue Margin Cost per hour or kg Machine hours 6 minutes 3 minutes 5 minutes R 75 Labour hours 12 minutes 5 minutes 10 minutes R 60 Paper Pulp 750 grams 250 grams 300 grams R 25 Overhead costs are allocated amongst four department: Production department Alpha, Production department Omega, the Packaging Service department and the Maintenance Service department. Production department Alpha is machine intensive and Production department Omega is labour intensive. Another costing clerk has prepared the following table for you: Cost Pools Cardboard Plain White Blue Margin Total Alpha Omega R640 000 R1 250 000 Packing of Orders R350 000 Maintenance ? ? R840 000 Cost Drivers and Production Cardboard Plain White Blue Margin Total Maintenance hours 3 000 1 000 2 000 6 000 Orders of paper 1 550 1 900 300 750 500 Quality Control 500 800 600 checks Production (exam 130 000 240 000 180 000 550 000 pads) Labour hours 18 000 33 000 25 000 76 000 Machine hours 10 000 18 000 12 000 40 000