Reference no: EM132787444

Question 1 - Under-recovery of overheads occurs when:

a. The amount of actual overheads incurred is less than the overheads that have been charged to production.

b. The amount of overheads charged to production is lower than the actual overheads incurred.

c. The amount of budgeted overheads is less than the actual overheads incurred.

d. Actual overheads have fallen in relation to what they were expected to be.

Question 2 - A company absorbs factory overheads at a rate of N$25 per direct labour hour. At the beginning of the year, the company estimated that the direct labour hours were 10 000 hours. During the year, the actual direct labour hours and actual manufacturing overheads costs incurred were 12 000 hours and NS350 000, respectively. The amount of factory overheads charged during the period was?

Question 3 - A company has been using an overhead absorption rate based on direct labour cost. During the year, the company incurred N$400 000 and N$150 000, in actual conversion and direct labour costs, respectively. The budgeted manufacturing overhead rate used during the past year was 200% of direct labour cost. The under/over absorbed factory overhead cost for the period was?

Question 4 - Shoe Repair Trading uses a piecework and time-based system to pay its employees. Employees are paid N$20 for replacing a shoe sole. The hourly rate is N$5 for a daily 7 hours shift. Mr Shoemaker managed to replace the sole of 25 shoes on Tuesday last week in 7 hours. Using the piecework system what was Mr. Shoemaker's wage for that Tuesday?

Question 5 - Mr. Jackson Carpenter works a 40-hour shift from Monday to Friday at an hourly rate of N$70.00 and overtime is paid at a time-and-half. During the week he worked 8 hours overtime. What is overtime premium?