The overtime premium is always considered as an indirect labour cost.
True
False
Question 5
Complete
Mark 1.00 out of 1.00
The purpose of the Unemployment Insurance Fund (UIF) is to provide bene�ts to
employees should they become unemployed.
True
False
Question 6
Complete
Mark 1.00 out of 1.00
FIFO means that the actual goods that were purchased �rst are physically sold/
(issued to production) �rst
True
False
Question 7
Complete
Mark 2.00 out of 2.00
Complete the following statements by choosing the correct answer:
• Perpetual inventory system involves counting and checking several inventory
items on a regular basis so that each item is checked at least once a year.
• Factory’s capacity where the anticipated use of available capacity is based on the
planned production levels in the budget of the company is referred to as
Complete the following statement by choosing the correct answer from the options
provided:
The higher the number of orders placed, the lower the ordering cost, but the
higher the holding cost.
Question 12
Complete
Mark 4.00 out of 4.00
Sebenzelaphi Company has two (2) production departments. The predetermined
overhead rate is based on labour cost in Department A and on machine hours in
Department B. At the beginning of the year, the company made the following
estimates:
Department A Department B
Direct labour cost R65 000 R42 000
Manufacturing overheads R91 000 R48 000
Direct labour hours 8 000 10 000
Machine hours 3 000 12 000
Required:
Calculate the predetermined overhead rates for Departments A and B by choosing the
correct answer from the options provided:
• Department A 140%
• Department B R4.00
4 of 7 2024/05/02, 15
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