100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
MAC2601 Oct/Nov 2020 Exam $2.77
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of South Africa (Unisa)
  4.  
  5. MAC2601 - Principles Of Management Accounting (MAC2601)

Other

MAC2601 Oct/Nov 2020 Exam

1 review
 90 views  2 purchases
  • Course
  • MAC2601 - Principles Of Management Accounting (MAC2601)
  • Institution
  • University Of South Africa (Unisa)

This document includes the questions and solutions.

Preview 3 out of 17  pages

Document information

  • January 12, 2022
  • 17
  • 2021/2022
  • Other
  • Unknown

Subjects

  • mac2601
  • mac2601 exam

Written for

  • University of South Africa (Unisa)
  • MAC2601 - Principles Of Management Accounting (MAC2601)
All documents for this subject (123)

1  review

review-writer-avatar

By: Thir • 2 year ago

Seller

avatar-seller
aj107

Reviews received

Content preview

Principles of Management Accounting
MAC2601
Exam Oct/Nov 2020
100 Marks
Duration 2 Hours

,QUESTION 1 – 17 Marks (20 Minutes)

Fitness Fanatics (Pty) Ltd (“Fitness Fanatics”) was established in 2011 by Ms. Thembi
Mutsamayi and is based in Krugersdorp. The company is a processor and distributor of a
popular type of protein energy bar called Pumpkin Seed. The company has a 30 June year-
end.

Budgeted data for the year ended 30 June 2020 are as follows:

Pumpkin Seed
Sales units 1 500 000
Selling price per unit R38,50
Direct material costs per unit R12,00

Some of the company costs in total (Rand) for the 2020 financial year were as follows:

Budgeted Actual
R R
Fixed manufacturing overheads 22 644 000 24 000 000
Direct labour 12 520 800 ?
Fixed administrative salaries 777 000 777 000
Selling and distribution costs 2 140 000 2 000 000

The Senior Management Accountant provided the following information with regard to the
actual figures for the year ended 30 June 2020:

Pumpkin Seed
Selling price per unit R39,00
Direct material costs per unit R9,70
Direct labour rate per hour R24,00




QUESTION 1 (continued)

, 2. No inventory of direct materials or work-in-progress is held. The company used the first-
in-first-out (FIFO) method of inventory valuation.

3. All completed protein energy bars are packaged and taken into inventory.

4. Assume that the opening and closing budgeted inventories in units are equivalent to the
respective opening and closing actual inventories in units (per the above quantity schedule).

5. The actual inventory costs on 1 July 2019 also includes absorbed fixed manufacturing
overheads.

6. Fixed manufacturing overheads (FMO) are absorbed based on normal capacity of 503 200
direct labour hours per year. FMO are allocated to production based on direct labour hours
worked.

7. The actual direct labour hours for the 2020 financial year were 483 000.




Answer:

𝑅22 644 000
a) Budgeted overhead rate = hrs = R45 per hour
503 200
Applied overheads: 𝑅45 × 483 000 hrs = 𝑅21 735 000
Actual overheads (given) 𝑅24 000 000
Under applied overheads 𝑅 2 265 000

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller aj107. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $2.77. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53068 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$2.77  2x  sold
  • (1)
Add to cart
Added