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QUESTION 3 In February 2020 all South African University HOD met up with the heads of state to discuss a new project named Delta Protocol, for manufacturing and administering Covid- 19 vaccines for all university staff, Unisa Clinical Department was chosen to be in charge of the project. Delta Protocol was allocated funds to start with the project. In March 2020 Unisa rented a factory building that could manufacturer vaccines. Unisa has employed INC 2601/S1/2022 2 000 people to work in the manufacturing line in their newly rented factory. The manufacturing employees worked an 8-hour shift for 5 days a week to manufacture these vaccines. Mr. Chauke the Production Manager worked hand in hand with Thabo a new graduate in Logistics. Here are the Books of Delta Protocol from March till November 2020 in Table 1. Table 1: Books of Delta Protocol Cost Raw Material (600 000 units) R 15.50 per unit Factory Labor (Manufacturing) R 25.50 per hour Factory Rent R 50 000 per month Indirect Labor R 110 000 per month Factory water and electricity R 15 000 per week Machine maintenance R 35 000 per month Finance Cost R 13 000 per week Marketing cost R 17 000 per month You have been requested by Mr. Thabo to assist with the following cost classification estimation for the month of March 2020: 3.1 Direct Material Cost (3) 3.2 Direct Labour Cost (3) 3.3 Manufacturing Overhead Cost (6) 3.4 Prime cost (4) 3.5 Period Cost (3) 3.6 Conversion Cost (3) 3.7 Product Cost (4) 3.8 Total Variable cost for vaccine if 488 000 are produced and material cost is as per the raw material price (4) [30]

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