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Acc 2101 Cost Accounting Cat I II
Acc 2101 Cost Accounting Cat I II
Njoroge, Wambua and Akinyi are working in a flower firm. they are involved in packing flowers
ready for export to Netherlands. They all work on a 40-hour week. The normal hourly rate of pay
is Ksh. 50 per hour, Ksh. 60 per hour and Ksh. 45 per hour for Njoroge, Wambua and Akinyi. If
any worker exceeds the normal working hours they are paid at a time and half of the basic rate.
The workers must also pack flowers per week as follows: 500, 450,600 packets respectively for
Njoroge, Wambua and Akinyi. If they exceed this packages, then they are entitled to a bonus
equal to 20% of the total weekly wages received. Njoroge, Wambua and Akinyi packed 600, 450
and 750 flower packages. If a worker pack flowers within or less than his or her allocations, then
she does not qualify for any bonus.
Required
i. Compute the basic pay per week for all the workers.
ii. Compute the overtime payments for the employees.
iii. Compute the bonus payments for the employees.
iv. Compute the total pay for all the employees.
1
CAT TWO (15 marks)
a) Consider the overhead accounting concept and explain the various ways of apportioning
overheads in a company of your choice. Use practical examples in your submissions.