MAC2601 ASSIGNMENT 2 SEMESTER 2 OF 2022

MAC2601 ASSIGNMENT 2 – SEMESTER 2 OF
2022

QUESTION 1
PART A

(a) Calculation of manufacturing overheads per unit

Calculations

C1 Machining costs OAR = 𝑇𝑜𝑡𝑎𝑙 𝑀𝑎𝑐ℎi𝑛i𝑛𝑔 𝐶𝑜𝑠𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑀𝑎𝑐ℎi𝑛𝑒 𝐻𝑜𝑢𝑟𝑠

Calculation of total machine hours

Hours
150
Rocky (826 * ) 2 065
60
225
BMY (2 040 * )
60 7 650
9 715

Machining costs OAR = 2 623 050
9 715

= 𝑅270 𝑝𝑒𝑟 𝑚𝑎𝑐ℎi𝑛𝑒 ℎ𝑜𝑢𝑟

C2. Assembly costs OAR = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑚𝑏𝑙𝑦 𝐶𝑜𝑠𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑟𝑜𝑑𝑢𝑐𝑡i𝑜𝑛 𝑟𝑢𝑛𝑠


Calculation of number of production runs

Production
Runs
826
Rocky ( ) 118
7
2 040
BMY ( )
30 68
186


Assembly costs OAR = 2 250 000
186

= 𝑅12 096. 77 𝑝𝑒𝑟 𝑝𝑟𝑜𝑑𝑢𝑐𝑡i𝑜𝑛 𝑟𝑢𝑛



FOR ACCADEMIC NEEDS CONTACT /0651609781

, 𝑇𝑜𝑡𝑎𝑙 O𝑢𝑎𝑙i𝑡𝑦 𝐼𝑛𝑠𝑝𝑒𝑐𝑡i𝑜𝑛𝑠 𝐶𝑜𝑠𝑡
C3. Quality inspections OAR =
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 q𝑢𝑎𝑙i𝑡𝑦 i𝑛𝑠𝑝𝑒𝑐𝑡i𝑜𝑛𝑠


Calculation of total number of quality inspections

Number of
quality
inspections
Rocky (15 * 118) 1 770
BMY (60 * 68) 4 080
5 850


Quality inspections OAR = 5 265 000
5 850

= 𝑅900 𝑝𝑒𝑟 q𝑢𝑎𝑙i𝑡𝑦 i𝑛𝑠𝑝𝑒𝑐𝑡i𝑜𝑛

C4. Stores receiving costs OAR = 𝑇𝑜𝑡𝑎𝑙 𝑆𝑡𝑜𝑟𝑒𝑠 𝑅𝑒𝑐𝑒i𝑣i𝑛𝑔 𝐶𝑜𝑠𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑟𝑡𝑠 𝑑𝑒𝑙i𝑣𝑒𝑟𝑒𝑑 𝑑𝑢𝑟i𝑛𝑔 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟

2 610 000
= (369
+ 675)


= 𝑅2 500 𝑝𝑒𝑟 𝑝𝑎𝑟𝑡 𝑑𝑒𝑙i𝑣𝑒𝑟𝑒𝑑

C5. Stores issue costs OAR = 𝑇𝑜𝑡𝑎𝑙 𝑆𝑡𝑜𝑟𝑒𝑠 𝐼𝑠𝑠𝑢𝑒𝑠 𝐶𝑜𝑠𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 i𝑠𝑠𝑢𝑒𝑠 𝑓𝑟𝑜𝑚 𝑠𝑡𝑜𝑟𝑒𝑠

3 065 023
= (650
+ 980)


= 𝑅1 880. 38




FOR ACCADEMIC NEEDS CONTACT /0651609781