show me how to solve the attached questions please

GROUP WORK (30MARKS) ANSWER ALL QUESTIONS

A.     Given that total budgeted overheads = Shs.240,000

Production budget is as follows:

Product		                  A	           B
i)	Units	20,000	10,000
ii)	Labour hours	20,000	20,000
iii)	Labour cost	17,500	22,500
iv)	Machine hours	45,000	15,000
v)	Material cost	15,000	25,000

 

Required;

The overhead absorption rater per unit of A and B using the following methods:(10marks)

a)       Unit method

b)      Percentage on material cost.

c)       Percentage on labour cost.

d)      Percentage On prime cost.

e)       Labour hour rate.

f)        Machine hour rate.              

A.      Use the following information to prepare income statements using absorption costing and marginal costing.                                                                                                                                 

(8marks)

Kshs.

Direct Material cost per unit                                                                                    5

Direct labour cost per unit                                                                                        9

Variable manufacturing overhead per unit.                                                        0.60

Total fixed manufacturing overhead per year                                                   96000

Number of units produced per year                                                                   10000

Sale price per unit                                                                                                     35

Units sold                                                                                                                   8000

Variable selling and administration expenses per unit                                      1.20

Fixed administration and selling expenses                                                         58000

Explain the difference in profits calculated in above.                                                            (2mks)

B.      Kwetu enterprises sell two products X and Y. During the year 2015, it plans to sell the following quantities of each product.

 

Sales budget (in units)

   Total           Quarter 1                Quarter 2                    Quarter 3                             Quarter 4

X 7000            9000                          2300                            3000                                     8000

Y 3000            8500                          7500                             5500                                     8500

 

Each of these two products is sold on a seasonal basis. Product A tends to sell better in summer months, while product B sells better during winter. X is sold at sh.10 per unit while Y at a price of sh.20 per unit throughout the year.

A study of the past experience reveals that KituKidogo enterprises has lost about 3% of its invoice each year because of returns (constituting 2% loss of revenue) allowances and bad debts(1% of loss)

Required;

        I.            Prepare a sales budget incorporating the above information.                                              (10marks)