Cadmore Limited is a manufacturing business. The following information is available for the month of April 2014. $ Inventory at 1 April 2014: Raw materials 10830, Work in progress 12700, Finished goods 25800. Factory wages 60690. Office wages 24750. Purchases of raw materials 80670. Depreciation of factory machinery 7000. Depreciation of office equipment 5000. Rent of factory building 2000. Rent of office building 1000. Royalties 7500. Factory management salaries 10750. Office management salaries 32000. Revenue 290450. Insurance 1250. General expenses 8000. Additional information 1 Inventory at 30 April 2014: Raw materials 12400, Work in progress 9980, Finished goods 24700. 2 Insurance is to be apportioned 80% to the factory, 20% to the office. 3 General expenses: $5000 relate to the factory and $3000 to the office. REQUIRED

1. (a)(i)Explain the term direct cost.[1]
2. (a)(ii)State two direct costs incurred by Cadmore Limited.[2]
3. (b)Prepare the manufacturing account of Cadmore Limited for the month ended 30 April 2014. Cadmore Limited Manufacturing Account for the month ended 30 April 2014[11]
4. (c)One of the factory workers of Cadmore Limited worked a total of 220 hours in April 2014. 160 hours were paid at $8 per hour 40 hours were paid at time and a half 20 hours were paid at double time Tax and social security of $240 was deducted from the factory worker's gross pay. REQUIRED Calculate the factory worker's net pay for April 2014.[3]
5. (d)Cadmore Limited must pay an additional 10% of the factory worker's gross pay for employer's tax and social security contributions. REQUIRED Calculate the total employee's and employer's tax and social security payment to the tax authorities for the factory worker in April 2014.[3]