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MAC 2601 ASSIGNMENT 2 SEMESTER 1 2021 - ANSWERS
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MAC 2601 ASSIGNMENT 2 SEMESTER 1 2021 - ANSWERS
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MAC 2601ASSIGNMENT 2 SEMETER 1 2021
UNIQUE NUMBER: 759659
This document is to be used only for comparison
purposes.
Do not distribute, duplicate or submit this document.
, QUESTION 1
a) Calculate total actual material costs, including total ordering and total carrying
costs for the 2021 at EOQ.
Total inventory cost = ordering cost + carrying costs
Total inventory cost = 1 284.69 + 1 284.36 = 2 569.05
Calc:
EOQ = √2*D*0/H
EOQ = √2*100000*25/1.10+0.12 = 1964 units
Total ordering cost = 100 000/1946 x 25 = 1284.69
Total carrying cost = 1946/2 x (1.10 + 0.12) = 1284.36
b) Calculate total labour costs.
Normal wages (5x45x48x50) 540 000.00
Overtime pay
4 employees (20x4x50x2.5) 10 000.00
1 employee(25x50x2.5) 3 125.00
GROSS RENUMERATION 553 125.00
Pension fund contribution(9%x540 000) 48 600.00
UIF(1%x553 125) 5 531.25
Medical aid 42 743.75
TOTAL COST TO COMPANY 650 000.00
c) Determine the manufacturing overhead recovery rates for both Division Apple
and Division Banana.
OAR = Total budgeted overheads / budgeted machine hours
OAR(Apple) = 1 390 250/25 000 = R55.61/hr
OAR(Banana) = 1 289 750/30 000 = R42.99/hr
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