Page 303 - BA2 Integrated Workbook STUDENT 2018
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Answers to supplementary objective test questions
7.4 C
An attainable standard is achievable if work is carried out efficiently. An ideal
standard can have a negative motivational impact because it makes no
allowances for unavoidable losses or idle time, etc. A basic standard is out of
date and unrealistic as a basis for monitoring performance. A current standard
is based on current levels of performance and so does not provide any incentive
for extra effort.
CHAPTER 8 – INTEGRATED ACCOUNTING SYSTEMS
8.1 The values are:
A $48,250
B $598,050
C $617,300
D $32,800
The completed account is shown below:
Direct material stores control account
$ $
Balance b/f 48,250 Work in progress 598,050
Payables 617,300 Production overhead control 32,800
8.2 A
The accounting entries for over-absorbed production overhead would be:
Dr Overhead control account
Cr Statement of profit or loss
8.3 The overtime premium paid to the operator would be $35.70.
Overtime (42 – 35) = 7 hours
Overtime premium per hour (50% × $10.20) = $5.10
Overtime premium = (7 hours × $5.10) = $35.70
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