Guaranteed Distinction

Answer: R234.50

FMO allocation rate per machine hour = (Total Budgeted Fixed manufacturing
overheads / Total Budgeted machine hours)
Total Budgeted Machine Hours = [(10 000 * 1.25) + (15 000 * 1) + (20 000 * 1.4)] =
55 500hrs
FMO allocation rate per machine hour = 13 014 500 = R234.50 per hour




ANSWER: R1 920 000

FMO allocated to Grid = FMO rate * Actual machine hours = 200 * 8 000 * 1.2 = R1 920 000

,Answer: Over allocation R301 400

Over allocation = FMO allocated – Actual FMO = 12 800 000 – 12 498 600 = R301 400




Answer: Prime cost and a conversion cost

, Answer: Total machine hours spend per product type




Total receipts = *(155 000 * 10%) + (155 000 * 90% * 70%) + 80 000+ = R193 150