Exam (elaborations)
MAC3701 FI CONCESSION EXAM 2024
- Course
- Institution
THIS DOCUMENT CONTAINS CAREFULLY WORKED OUT MAC3701 FI CONCESSION EXAM 2024. USE IT FOR COMPARISON
[Show more]
Seller
Follow
oscardiura
Reviews received
Content preview
(A - a) Sales Volume Variance per Product Type and in TotalThe formula for sales volume variance is:
Sales Volume Variance = (Actual Units Sold − Budgeted Units Sold) × Budgeted Contribution per Unit
Deluxe:
OSCAR THE TUTOR
Budgeted sales: 5,200 units oscardiura@gmail.com
+27737560989
Actual sales: 5, 200 × 75% = 3, 900 units for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
tutorials
Budgeted contribution per unit: R8,400
Deluxe Sales Volume Variance = (3, 900 − 5, 200) × 8, 400 = (−1, 300) × 8, 400 = −R10, 920, 000
Elite:
Budgeted sales: 2,800 units
Actual sales: 6, 500 − 3, 900 = 2, 600 units
Budgeted contribution per unit: R8,700
Elite Sales Volume Variance = (2, 600 − 2, 800) × 8, 700 = (−200) × 8, 700 = −R1, 740, 000
Total Sales Volume Variance:
Total Sales Volume Variance = −R10, 920, 000 + (−R1, 740, 000) = −R12, 660, 000
(A - b) Direct Material Purchase Price Variance for All Raw Materials
The formula for purchase price variance is:
Direct Material Purchase Price Variance = (Actual Price − Standard Price) × Actual Quantity Purchased
Aluminium:
1,032,000
Actual price: 21,500
= R48 per kg
Standard price: R45 per kg
Actual quantity: 21,500 kg
Aluminium Price Variance = (48 − 45) × 21, 500 = 3 × 21, 500 = R64, 500
Magnesium:
467,500
Actual price: 8,500
= R55 per kg
Standard price: R53 per kg
Actual quantity: 8,500 kg
Magnesium Price Variance = (55 − 53) × 8, 500 = 2 × 8, 500 = R17, 000
, Total Direct Material Purchase Price Variance:
Total Price Variance = R64, 500 + R17, 000 = R81, 500
(A - c) Direct Raw Material Mix Variance for Deluxe Product Only
The formula for material mix variance is:
Material Mix Variance = (Actual Quantity of Material − Revised Standard Quantity) × Standard Price
Where the revised standard quantity is the proportion of the total actual material used, based on the standard
mix.
Aluminium (Deluxe):
Total actual usage for Deluxe: 11,850 + 4,150 = 16,000 kg
Proportion for Aluminium: 34 = 75%
Revised standard quantity for Aluminium: 16, 000 × 75% = 12, 000 kg
Actual quantity: 11,850 kg
Standard price: R45 per kg
Aluminium Mix Variance = (11, 850 − 12, 000) × 45 = (−150) × 45 = −R6, 750
Magnesium (Deluxe):
Proportion for Magnesium: 14 = 25%
Revised standard quantity for Magnesium: 16, 000 × 25% = 4, 000 kg
Actual quantity: 4,150 kg
Standard price: R53 per kg
Magnesium Mix Variance = (4, 150 − 4, 000) × 53 = 150 × 53 = R7, 950
Total Deluxe Mix Variance:
Total Mix Variance = −R6, 750 + R7, 950 = R1, 200(F avorable)
(A - d) Direct Labour Idle Time Variance for Technical Labour per Product Type
The formula for idle time variance is:
Idle Time Variance = (Actual Idle Time − Allowed Idle Time) × Standard Hourly Rate
Deluxe:
Actual hours: 1.755 clock hours
Allowed idle time: 8%
Actual idle time: 6%
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 oscardiura. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.61. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now