ACCOUNTING LYCEUM
  • Home
  • CAPE® Suggested Solutions
  • CSEC® Suggested Solutions
  • Tutorials & Tips
  • Home
  • CAPE® Suggested Solutions
  • CSEC® Suggested Solutions
  • Tutorials & Tips
Search
Cape Accounting

     Suggested Solutions

Unit 2: May 2012, Question #1 (D)

3/28/2018

0 Comments

 
No. 1(d) (i): Calculation of the cost of producing 300,000 units of luxury sandwiches and 450,000 units of standard sandwiches under the piece rate system, for Cal’s Fast Food.
Picture
No. 1(d) (ii): Calculation of the total number of hours worked during the summer for Cal’s Fast Food.
Picture
No. 1(d) (iii): Calculation of the overtime hours worked per week during the summer for Cal’s Fast Food.
Picture
No. 1(d) (iv): Calculation of the additional pay for labor over the 8 weeks of summer for Cal’s Fast Food.
Total overtime hours worked is 600 hours per week. The rate of overtime is $2.50 per hour. Therefore the additional pay for labor over the 8 weeks of summer = $600 X $2.50 X 8 weeks = $12,000.
 

No. 1(d) (v): Calculation of the annual wages payable under the proposed system for Cal’s Fast Food:
Proposed number of staff is 12 at a salary of $1,000 per month. Therefore the annual wages payable = 12 workers x $1,000 x 12 months = $144,000.
​
Alternatively:
It is proposed that each employee will work 50 weeks at 40 hours and be paid $6 per hour. Therefore annual wages = 12 employees x 50 weeks X 40 hours x $6 = $144,000.

Note: Either method of calculating the annual wages under the new proposed system is acceptable.
I hope that you found this proposed solution helpful! If you did please share it! Also, feel free to ask any questions or to comment below. Best of luck!
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    The author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor.

    Archives

    May 2018
    April 2018
    March 2018
    February 2018
    January 2018

    Categories

    All
    Unit 1: Adjusting Journals
    Unit 1: Business Structures
    Unit 1: Capital And Reserves
    Unit 1: Contingencies
    Unit 1: Partnerships
    Unit 1: Ratio Analysis
    Unit 1: SOFP And SOCI
    Unit 1: Statement Of Cashflows
    Unit 2: Classification Of Costs
    Unit 2: Job Costing
    Unit 2 Manufacturing Accounts
    Unit 2: Marginal Vs Absorption Costing
    Unit 2: Remunerations
    Unit 2: Traditional Vs Activity Based Costing

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • Home
  • CAPE® Suggested Solutions
  • CSEC® Suggested Solutions
  • Tutorials & Tips