MAC3701 Assignment 1 (ANSWERS) 2023 - DISTINCTION GUARANTEED

Well-structured MAC3701 Assignment 1 (ANSWERS) 2023 - DISTINCTION GUARANTEED . (DETAILED ANSWERS - DISTINCTION GUARANTEED!). .... Question 1 Complete Marked out of 1.00 QUIZ Tshintsha (Pty) Ltd is a manufacturer of three types of inverters namely grid-tied, off-grid and hybrid inverters. Tshintsha uses an absorptioncosting system. The following information is available for the fi nancial year ended 29 February 2024: Product Grid-tied Off-grid Hybrid Budgeted number of inverters produced 10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 Budgeted machine hours per unit 1,25 1,0 1,4 Actual machine hours per unit 1,2 1,1 1,3 1. The fi xed manufacturing overheads (FMO) are allocated to products based on the machine time spent. The total budgeted FMO for theyear was R and the total actual FMO was R. 2. There was no budgeted or actual opening or closing inventory of any type. The budgeted FMO allocation rate per machine hour (rounded to two decimal places) for the 2024 fi nancial year was: Select one: a. R225,20 b. None of the options c. R234,50 d. R229,33 e. R238,80 Question 2 Complete Marked out of 1.00 Tshintsha (Pty) Ltd is a manufacturer of three types of inverters namely grid-tied, off-grid and hybrid inverters. Tshintsha usesan absorption costing system. The following information is available for the fi nancial year ended 29 February 2024: Product Grid-tied Off-grid Hybrid Budgeted number of inverters produced 10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 Budgeted machine hours per unit 1,25 1,0 1,4 Actual machine hours per unit 1,2 1,1 1,3 1. The fi xed manufacturing overheads (FMO) are allocated to products based on the machine time spent. The totalbudgeted FMO for the year was R and the total actual FMO was R. 2. There was no budgeted or actual opening or closing inventory of any type. For this question only assume that the FMO allocation rate per machine hour is R200 The FMO allocated to product Grid-tied in the Actual statement of profi t and loss for the 2024 fi nancial year is: Select one: a. R2 000 000 b. R1 920 000 c. None of the options d. R2 400 000 e. R2 500 000 Question 3 Complete Marked out of 1.00 Question 4 Complete Marked out of 1.00 Tshintsha (Pty) Ltd is a manufacturer of three types of inverters namely grid-tied, off-grid and hybrid inverters. Tshintsha usesan absorption costing system. The following information is available for the fi nancial year ended 29 February 2024: Product Grid-tied Off-grid Hybrid Budgeted number of inverters produced 10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 Budgeted machine hours per unit 1,25 1,0 1,4 Actual machine hours per unit 1,2 1,1 1,3 1. The fi xed manufacturing overheads (FMO) are allocated to products based on the machine time spent. The totalbudgeted FMO for the year was R and the total actual FMO was R. 2. There was no budgeted or actual opening or closing inventory of any type. For his question only assume that the total FMO allocated to products in the 2024 fi nancial year actual statement of profi tand loss was R The 2024 fi nancial year’s over or under-allocated FMO amount was: Select one: a. Under allocation of R301 400 b. None of the options c. Over allocation of R214 750 d. Over allocation of R301 400 e. Under allocation of R214 750 Tshintsha (Pty) Ltd's direct labour cost can be classifi ed as a: Select one: a. Prime cost and a conversion cost. b. Neither a conversion cost nor a prime cost. c. Conversion cost but not a prime cost. d. Prime cost but not a conversion cost Question 5 Complete Marked out of 1.00 Question 6 Complete Marked out of 1.00 Lehong (Pty) Ltd, a pine furniture producer, uses an absorption costing system and allocates fi xed manufacturing overheads(FMO) to its products using Activity-based costing. The company’s production process is highly automated, and the directlabour and machine time used per product type differ materially. Which one of the following cost drivers will be mostappropriate for allocating the factory’s electricity bill? Select one: a. Number of units produced per product type. b. Total machine hours spend per product type. c. The fl oor space occupied (square meters) by each product type. d. The total direct labour hours per product type. Lehong (Pty) Ltd is preparing its cash budget for the period April 2024 to June 2024 and you have received the followinginformation: 1. All items are delivered in the month an order is placed and all customers pay a 10% deposit at the time of placing anorder. 2. The expected total sales for April 2024 and May 2024 are R155 000 and R180 000 respectively. 3. Cash sales amount to 70% of total sales after deposits and the remainder relates to trade debtors, who pay a monthlater. 4. The total trade debtors' outstanding balance at the end of March 2024 is expected to be R80 000. The total receipts from customers to be included in the cash budget for April 2024 is: Select one: a. None of the options b. R108 500 c. R188 500 d. R193 150 e. R113 150 Question 7 Complete Marked out of 1.00 Question 8 Complete Marked out of 1.00 Lehong (Pty) Ltd is preparing its cash budget for the period April 2024 to June 2024 and you have received the followinginformation: 1. All items are delivered in the month an order is placed and all customers pay a 10% deposit at the time of placing anorder. 2. The expected total sales for April 2024 and May 2024 are R155 000 and R180 000 respectively. 3. Cash sales amount to 70% of total sales after deposits and the remainder relates to trade debtors, who pay a monthlater. 4. The total trade debtors' outstanding balance at the end of March 2024 is expected to be R80 000. The total receipts from customers to be included in the cash budget for May 2024 is: Select one: a. R173 250 b. R167 850 c. R126 000 d. None of the options e. R131 400 Lehong (Pty) Ltd is preparing its April 2024 raw material (pine wood) purchase budget for the manufacturing of their tableproduct only. You have received the following information: 1. Pinewood's price in March 2024 is R5 000 per m³ and it is budgeted that it will increase by 5% in April 2024. 2. The expected total sales for April 2024 and May 2024 are 700 tables, and 850 tables respectively. 3. A table required 0,8 m³ of pine wood. 4. For April 2024 the opening pine wood inventory is 8 m³ and the target month-end inventory is 12 m³. 5. There was no opening fi nished goods inventory on the 1 of April 2024. The target month-end fi nished goods inventorylevel is 20 tables plus 10% of May 2024 budgeted sales. The total budgeted m³ pine wood that must be purchased during April 2024 is Select one: a. None of the options b. 480m³ c. 640 m³ d. 580 m³ e. 648 m³ st Question 9 Complete Marked out of 1.00 Lehong (Pty) Ltd is preparing its April 2024 raw material (pine wood) purchase budget for the manufacturing of their tableproduct only. You have received the following information: 1. Pinewood's price in March 2024 is R5 000 per m³ and it is budgeted that it will increase by 5% in April 2024. 2. The expected total sales for April 2024 and May 2024 are 700 tables, and 850 tables respectively. 3. A table required 0,8 m³ of pine wood. 4. For April 2024 the opening pine wood inventory is 8 m³ and the target month-end inventory is 12 m³. 5. There was no opening fi nished goods inventory on the 1 of April 2024. The target month-end fi nished goods inventorylevel is 20 tables plus 10% of May 2024 budgeted sales. For this question only assume that the total required pinewood is 500m³. The total budgeted purchase cost for April 2024 is: Select one: a. R2 631 579 b. R2 625 000 c. R2 375 000 d. None of the options e. R2 500 000 st Question 10 Complete Marked out of 1.00 Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-product namely AAA, is alsoproduced during this process. The following costs are incurred during the joint production process before the split-off point: Cost R Raw materials R2 000 000 Labour cost R1 300 000 Manufacturing overhead cost R3 500 000 Non-manufacturing overhead cost R700 000 In addition, the following information is provided There was no opening or closing inventory of any kind. Product RFV is sold directly after split-off. Product NJU requires further processing into product NJL at a cost of R120 000 before it is in a sellable condition. Noincrease or decrease in volume occurs during this further processing. The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000. 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA were produced. Joint costs are allocated to joint products using the physical measure method. The total joint cost to be allocated to joint products is Select one: a. R6 760 000 b. R7 500 000 c. None of the options d. R6 845 000 e. R6 800 000 Question 11 Complete Marked out of 1.00 Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-product namely AAA, is alsoproduced during this process. The following costs are incurred during the joint production process before the split-off point: Cost R Raw materials R2 000 000 Labour cost R1 300 000 Manufacturing overhead cost R3 500 000 Non-manufacturing overhead cost R700 000 In addition, the following information is provided There was no opening or closing inventory of any kind. Product RFV is sold directly after split-off. Product NJU requires further processing into product NJL at a cost of R120 000 before it is in a sellable condition. Noincrease or decrease in volume occurs during this further processing. The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000. 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA were produced. Joint costs are allocated to joint products using the physical measure method. For this question only assume that the total joint cost to be allocated to joint products is R7 200 000. The production cost per litre of product NJL is: Select one: a. R9,40 b. R9,00 c. R10,00 d. R9,60 e. None of the options Question 12 Complete Marked out of 1.00 Khemikhale Ltd is exploring producing new products during a new joint process. One of the products, product PLM can besold at R60 per litre at split-off point, alternatively, product PLM can be further processed into product PLL at a cost of R40per litre. Product PLL can be sold at R90 per litre. No increase or decrease in volume occurs during the further processing ofproduct PLM into product PLL and Khemikhale is expected to produce 30 000 litres of PLL. The joint costs allocated toproduct PLM is R500 000. Which of the following statements is correct with respect to the further processing of product PLM into product PLL: Select one: a. The further processing of product PLM into product PLL will increase profi ts by R300 000. b. None of the options. c. The further processing of product PLM into product PLL will increase profi ts by R200 000. d. The further processing of product PLM into product PLL will decrease profi ts by R300 000. e. The further processing of product PLM into product PLL will increase profi ts by R200 000. Question 13 Complete Marked out of 1.00 BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses an absorption costing system.BesteLippe budgeted to produce and sell 1 800 000 units of Healing and 600 000 units of Organic for the fi nancial yearstarting on 1 May 2024. The other budgeted information is as follows: Details Healing R per unit Organic R per unit Selling price 40,00 45,00 Direct raw material 14,25 20,00 Direct Labour 5,00 8,00 Variable overhead costs 4,00 6,00 Selling and distribution costs (70% fi xed and 30% variable) 2,50 4,00 Fixed manufacturing overheads and General administrative costs are R5 000 000 and R respectively for thefi nancial year starting on 1 May 2024. The total budgeted fi xed cost to be used in the break-even unit calculation for the fi nancial year starting on 1 May 2024 is: Select one: a. R b. R c. R d. R e. None of the options Question 14 Complete Marked out of 1.00 BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses an absorption costing system.BesteLippe budgeted to produce and sell 1 800 000 units of Healing and 600 000 units of Organic for the fi nancial yearstarting on 1 May 2024. The other budgeted information is as follows: Details Healing R per unit Organic R per unit Selling price 40,00 45,00 Direct raw material 14,25 20,00 Direct Labour 5,00 8,00 Variable overhead costs 4,00 6,00 Selling and distribution costs (70% fi xed and 30% variable) 2,50 4,00 Fixed manufacturing overheads and General administrative costs are R5 000 000 and R respectively for thefi nancial year starting on 1 May 2024. The total weighted average contribution margin to be used in the break-even unit calculation for the fi nancial year starting on1 May 2024 is (round your answer to the nearest two decimal places): Select one: a. R27,75 b. R25,80 c. None of the options d. R14,45 e. R15,31 Question 15 Complete Marked out of 1.00 BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses an absorption costing system.BesteLippe budgeted to produce and sell 1 800 000 units of Healing and 600 000 units of Organic for the fi nancial yearstarting on 1 May 2024. The other budgeted information is as follows: Details Healing R per unit Organic R per unit Selling price 40,00 45,00 Direct raw material 14,25 20,00 Direct Labour 5,00 8,00 Variable overhead costs 4,00 6,00 Selling and distribution costs (70% fi xed and 30% variable) 2,50 4,00 Fixed manufacturing overheads and General administrative costs are R5 000 000 and R respectively for thefi nancial year starting on 1 May 2024. For this question only assume the following: i. The total fi xed cost is R for the fi nancial year starting on 1 May 2024. ii. The total weighted average contribution margin is R20. iii. All other information remains as given. Healing’s margin of safety percentage for the fi nancial year starting on 1 May 2024 is: Select one: a. 61,46% b. 38,54% c. 54,17% d. None of the options e. 62,71% Question 16 Complete Marked out of 1.00 Dakalo Ltd, a manufacturer of beauty products, value its inventory using First-in-fi rst out (FIFO). The actual results for the2024 fi nancial year are the following Details R Sales Revenue Direct raw materials Direct labour Variable manufacturing overheads Fixed manufacturing overheads Variable selling cost 3 000 000 Fixed selling cost 5 000 000 Non-manufacturing cost The opening inventory is 120 000 units, actual production 2 000 000 units and sales 2 040 000 units. Budgeted and actual fi xed manufacturing overhead amounts were equal. For this question only assumes that: i. Opening inventory is valued at R80 per unit ii. A direct costing system is used. The total contribution for Dakalo Ltd is: Select one: a. R b. R c. None of the options d. R e. R Question 17 Complete Marked out of 1.00 Dakalo Ltd, a manufacturer of beauty products, value its inventory using First-in-fi rst out (FIFO). The actual results for the2024 fi nancial year are the following Details R Sales Revenue Direct raw materials Direct labour Variable manufacturing overheads Fixed manufacturing overheads Variable selling cost 3 000 000 Fixed selling cost 5 000 000 Non-manufacturing cost The opening inventory is 120 000 units, actual production 2 000 000 units and sales 2 040 000 units. Budgeted and actual fi xed manufacturing overhead amounts were equal. For this question only assume that: i. Opening inventory is valued at R110 per unit ii. An absorption costing system is used. The total gross profi t for Dakalo Ltd is: Select one: a. R b. R c. None of the options d. R e. R Question 18 Complete Marked out of 1.00 Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads(FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Fixed manufacturing overheads R Set-up costs 480 000 Machine costs 1 600 500 Quality inspections 800 000 Set-up costs : The manufacturing machines need to be set up before each production run. The balls are manufactured inproduction runs and each independent Training production run contains 250 balls and each independent Match productionrun contains 100 balls. Machine cost : Temba’s production process is highly automated, and it takes 15 machine minutes and 24 machine minutesto manufacture one Training and one Match ball respectively. Quality inspections: Every 10 Match ball and every 200 Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total set-up cost allocated to Training balls is: Select one: a. R342 857,14 b. R320 000,00 c. R444 444,44 d. R400 000,00 e. None of the options th th Question 19 Complete Marked out of 1.00 Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads(FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Fixed manufacturing overheads R Set-up costs 480 000 Machine costs 1 600 500 Quality inspections 800 000 Set-up costs : The manufacturing machines need to be set up before each production run. The balls are manufactured inproduction runs and each independent Training production run contains 250 balls and each independent Match productionrun contains 100 balls. Machine cost : Temba’s production process is highly automated, and it takes 15 machine minutes and 24 machine minutesto manufacture one Training and one Match ball respectively. Quality inspections: Every 10 Match ball and every 200 Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total machine cost allocated to Match balls is: Select one: a. R388 000,00 b. R266 750,00 c. R984 923,08 d. R800 250,00 e. None of the options th th Question 20 Complete Marked out of 1.00 Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads(FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Fixed manufacturing overheads R Set-up costs 480 000 Machine costs 1 600 500 Quality inspections 800 000 Set-up costs : The manufacturing machines need to be set up before each production run. The balls are manufactured inproduction runs and each independent Training production run contains 250 balls and each independent Match productionrun contains 100 balls. Machine cost : Temba’s production process is highly automated, and it takes 15 machine minutes and 24 machine minutesto manufacture one Training and one Match ball respectively. Quality inspections: Every 10 Match ball and every 200 Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total quality inspection cost activity rate is: Select one: a. None of the options b. R64,00 c. R1,33 d. R266,67 e. R3 809,52 th th 3/24/24, 4:25 PM Question 1 Complete Marked out of 1.00 Tshintsha (Pty) Ltd is a manufacturer of three types of inverters namely grid-tied, off-grid and hybrid inverters. Tshintsha uses an absorption costing system. The following information is available for the financial year ended 29 February 2024: Product Gridtied Offgrid Hybrid Budgeted number of inverters produced Actual number of inverters produced Budgeted machine hours per unit 1,25 1,0 1,4 Actual machine hours per unit 1,2 1,1 1,3 1. The fixed manufacturing overheads (FMO) are allocated to products based on the machine time spent. The total budgeted FMO for the year was R and the total actual FMO was R. 2. There was no budgeted or actual opening or closing inventory of any type. The budgeted FMO allocation rate per machine hour (rounded to two decimal places) for the 2024 financial year was: Select one: a. R238,80 b. R229,33 c. R225,20 d. None of the options e. R234,50 3/24/24, 4:25 PM Question 2 Complete Marked out of 1.00 Tshintsha (Pty) Ltd is a manufacturer of three types of inverters namely grid-tied, off-grid and hybrid inverters. Tshintsha uses an absorption costing system. The following information is available for the financial year ended 29 February 2024: Product Gridtied Offgrid Hybrid Budgeted number of inverters produced 10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 Budgeted machine hours per unit 1,25 1,0 1,4 Actual machine hours per unit 1,2 1,1 1,3 1. The fixed manufacturing overheads (FMO) are allocated to products based on the machine time spent. The total budgeted FMO for the year was R and the total actual FMO was R. 2. There was no budgeted or actual opening or closing inventory of any type. For this question only assume that the FMO allocation rate per machine hour is R200 The FMO allocated to product Grid-tied in the Actual statement of profit and loss for the 2024 financial year is: Select one: a. R2 500 000 b. None of the options c. R2 400 000 d. R2 000 000 e. R1 920 000 3/24/24, 4:25 PM Question 3 Complete Marked out of 1.00 Tshintsha (Pty) Ltd is a manufacturer of three types of inverters namely grid-tied, off-grid and hybrid inverters. Tshintsha uses an absorption costing system. The following information is available for the financial year ended 29 February 2024: Product Gridtied Offgrid Hybrid Budgeted number of inverters produced 10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 Budgeted machine hours per unit 1,25 1,0 1,4 Actual machine hours per unit 1,2 1,1 1,3 1. The fixed manufacturing overheads (FMO) are allocated to products based on the machine time spent. The total budgeted FMO for the year was R and the total actual FMO was R. 2. There was no budgeted or actual opening or closing inventory of any type. For his question only assume that the total FMO allocated to products in the 2024 financial year actual statement of profit and loss was R The 2024 financial year’s over or underallocated FMO amount was: Select one: a. None of the options b. Over allocation of R214 750 c. Under allocation of R301 400 d. Under allocation of R214 750 e. Over allocation of R301 400 3/24/24, 4:25 PM Question 4 Complete Marked out of 1.00 Question 5 Complete Marked out of 1.00 Tshintsha (Pty) Ltd's direct labour cost can be classified as a: Select one: a. Conversion cost but not a prime cost. b. Neither a conversion cost nor a prime cost. c. Prime cost but not a conversion cost d. Prime cost and a conversion cost. Lehong (Pty) Ltd, a pine furniture producer, uses an absorption costing system and allocates fixed manufacturing overheads (FMO) to its products using Activity-based costing. The company’s production process is highly automated, and the direct labour and machine time used per product type differ materially. Which one of the following cost drivers will be most appropriate for allocating the factory’s electricity bill? Select one: a. Number of units produced per product type. b. The total direct labour hours per product type. c. Total machine hours spend per product type. d. The floor space occupied (square meters) by each product type. 3/24/24, 4:25 PM Question 6 Complete Marked out of 1.00 Lehong (Pty) Ltd is preparing its cash budget for the period April 2024 to June 2024 and you have received the following information: 1. All items are delivered in the month an order is placed and all customers pay a 10% deposit at the time of placing an order. 2. The expected total sales for April 2024 and May 2024 are R155 000 and R180 000 respectively. 3. Cash sales amount to 70% of total sales after deposits and the remainder relates to trade debtors, who pay a month later. 4. The total trade debtors' outstanding balance at the end of March 2024 is expected to be R80 000. The total receipts from customers to be included in the cash budget for April 2024 is: Select one: a. R193 150 b. R108 500 c. None of the options d. R113 150 e. R188 500 3/24/24, 4:25 PM Question 7 Complete Marked out of 1.00 Lehong (Pty) Ltd is preparing its cash budget for the period April 2024 to June 2024 and you have received the following information: 1. All items are delivered in the month an order is placed and all customers pay a 10% deposit at the time of placing an order. 2. The expected total sales for April 2024 and May 2024 are R155 000 and R180 000 respectively. 3. Cash sales amount to 70% of total sales after deposits and the remainder relates to trade debtors, who pay a month later. 4. The total trade debtors' outstanding balance at the end of March 2024 is expected to be R80 000. The total receipts from customers to be included in the cash budget for May 2024 is: Select one: a. None of the options b. R131 400 c. R167 850 d. R126 000 e. R173 250 3/24/24, 4:25 PM Question 8 Complete Marked out of 1.00 Lehong (Pty) Ltd is preparing its April 2024 raw material (pine wood) purchase budget for the manufacturing of their table product only. You have received the following information: 1. Pinewood's price in March 2024 is R5 000 per m³ and it is budgeted that it will increase by 5% in April 2024. 2. The expected total sales for April 2024 and May 2024 are 700 tables, and 850 tables respectively. 3. A table required 0,8 m³ of pine wood. 4. For April 2024 the opening pine wood inventory is 8 m³ and the target month-end inventory is 12 m³. 5. There was no opening finished goods inventory on the 1 of April 2024. The target month-end finished goods inventory level is 20 tables plus 10% of May 2024 budgeted sales. The total budgeted m³ pine wood that must be purchased during April 2024 is Select one: a. 640 m³ b. 580 m³ c. 648 m³ d. 480m³ e. None of the options st 3/24/24, 4:25 PM Question 9 Complete Marked out of 1.00 Lehong (Pty) Ltd is preparing its April 2024 raw material (pine wood) purchase budget for the manufacturing of their table product only. You have received the following information: 1. Pinewood's price in March 2024 is R5 000 per m³ and it is budgeted that it will increase by 5% in April 2024. 2. The expected total sales for April 2024 and May 2024 are 700 tables, and 850 tables respectively. 3. A table required 0,8 m³ of pine wood. 4. For April 2024 the opening pine wood inventory is 8 m³ and the target month-end inventory is 12 m³. 5. There was no opening finished goods inventory on the 1 of April 2024. The target month-end finished goods inventory level is 20 tables plus 10% of May 2024 budgeted sales. For this question only assume that the total required pinewood is 500m³. The total budgeted purchase cost for April 2024 is: Select one: a. R2 625 000 b. R2 631 579 c. None of the options d. R2 500 000 e. R2 375 000 st 3/24/24, 4:25 PM Question 10 Complete Marked out of 1.00 Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-product namely AAA, is also produced during this process. The following costs are incurred during the joint production process before the split-off point: Cost R Raw materials R2 000 000 Labour cost R1 300 000 Manufacturing overhead cost R3 500 000 Non-manufacturing overhead cost R700 000 In addition, the following information is provided There was no opening or closing inventory of any kind. Product RFV is sold directly after splitoff. Product NJU requires further processing into product NJL at a cost of R120 000 before it is in a sellable condition. No increase or decrease in volume occurs during this further processing. The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000. 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA were produced. Joint costs are allocated to joint products using the physical measure method. The total joint cost to be allocated to joint products is Select one: a. R6 845 000 b. None of the options c. R6 800 000 d. R6 760 000 e. R7 500 000 3/24/24, 4:25 PM Question 11 Complete Marked out of 1.00 Khemikhale Ltd produces chemicals RFV and NJU during a joint production process. A by-product namely AAA, is also produced during this process. The following costs are incurred during the joint production process before the split-off point: Cost R Raw materials R2 000 000 Labour cost R1 300 000 Manufacturing overhead cost R3 500 000 Non-manufacturing overhead cost R700 000 In addition, the following information is provided There was no opening or closing inventory of any kind. Product RFV is sold directly after splitoff. Product NJU requires further processing into product NJL at a cost of R120 000 before it is in a sellable condition. No increase or decrease in volume occurs during this further processing. The total output for Product AAA was sold for R50 000 and the related selling cost was R10 000. 450 000 litres of product RFV, 300 000 litres of product NJL and 50 000 litres of product AAA were produced. Joint costs are allocated to joint products using the physical measure method. For this question only assume that the total joint cost to be allocated to joint products is R7 200 000. The production cost per litre of product NJL is: Select one: a. None of the options b. R10,00 c. R9,40 d. R9,00 e. R9,60 3/24/24, 4:25 PM Question 12 Complete Marked out of 1.00 Khemikhale Ltd is exploring producing new products during a new joint process. One of the products, product PLM can be sold at R60 per litre at split-off point, alternatively, product PLM can be further processed into product PLL at a cost of R40 per litre. Product PLL can be sold at R90 per litre. No increase or decrease in volume occurs during the further processing of product PLM into product PLL and Khemikhale is expected to produce 30 000 litres of PLL. The joint costs allocated to product PLM is R500 000. Which of the following statements is correct with respect to the further processing of product PLM into product PLL: Select one: a. The further processing of product PLM into product PLL will increase profits by R200 000. b. The further processing of product PLM into product PLL will increase profits by R300 000. c. None of the options. d. The further processing of product PLM into product PLL will decrease profits by R300 000. e. The further processing of product PLM into product PLL will increase profits by R200 000. 3/24/24, 4:25 PM Question 13 Complete Marked out of 1.00 BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses an absorption costing system. BesteLippe budgeted to produce and sell 1 800 000 units of Healing and 600 000 units of Organic for the financial year starting on 1 May 2024. The other budgeted information is as follows: Details Healing R per unit Organic R per unit Selling price 40,00 45,00 Direct raw material 14,25 20,00 Direct Labour 5,00 8,00 Variable overhead costs 4,00 6,00 Selling and distribution costs (70% fixed and 30% variable) 2,50 4,00 Fixed manufacturing overheads and General administrative costs are R5 000 000 and R respectively for the financial year starting on 1 May 2024. The total budgeted fixed cost to be used in the break-even unit calculation for the financial year starting on 1 May 2024 is: Select one: a. R b. None of the options c. R d. R e. R 3/24/24, 4:25 PM Question 14 Complete Marked out of 1.00 BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses an absorption costing system. BesteLippe budgeted to produce and sell 1 800 000 units of Healing and 600 000 units of Organic for the financial year starting on 1 May 2024. The other budgeted information is as follows: Details Healing R per unit Organic R per unit Selling price 40,00 45,00 Direct raw material 14,25 20,00 Direct Labour 5,00 8,00 Variable overhead costs 4,00 6,00 Selling and distribution costs (70% fixed and 30% variable) 2,50 4,00 Fixed manufacturing overheads and General administrative costs are R5 000 000 and R respectively for the financial year starting on 1 May 2024. The total weighted average contribution margin to be used in the break-even unit calculation for the financial year starting on 1 May 2024 is (round your answer to the nearest two decimal places): Select one: a. None of the options b. R25,80 c. R27,75 d. R15,31 e. R14,45 3/24/24, 4:25 PM Question 15 Complete Marked out of 1.00 BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses an absorption costing system. BesteLippe budgeted to produce and sell 1 800 000 units of Healing and 600 000 units of Organic for the financial year starting on 1 May 2024. The other budgeted information is as follows: Details Healing R per unit Organic R per unit Selling price 40,00 45,00 Direct raw material 14,25 20,00 Direct Labour 5,00 8,00 Variable overhead costs 4,00 6,00 Selling and distribution costs (70% fixed and 30% variable) 2,50 4,00 Fixed manufacturing overheads and General administrative costs are R5 000 000 and R respectively for the financial year starting on 1 May 2024. For this question only assume the following: i. The total fixed cost is R18 500 000 for the financial year starting on 1 May 2024. ii. The total weighted average contribution margin is R20. iii. All other information remains as given. Healing’s margin of safety percentage for the financial year starting on 1 May 2024 is: Select one: a. None of the options b. 62,71% c. 54,17% d. 38,54% e. 61,46% 3/24/24, 4:25 PM Question 16 Complete Marked out of 1.00 Dakalo Ltd, a manufacturer of beauty products, value its inventory using Firstin- first out (FIFO). The actual results for the 2024 financial year are the following Details R Sales Revenue Direct raw materials Direct labour Variable manufacturing overheads Fixed manufacturing overheads Variable selling cost 3 000 000 Fixed selling cost 5 000 000 Non-manufacturing cost The opening inventory is 120 000 units, actual production 2 000 000 units and sales 2 040 000 units. Budgeted and actual fixed manufacturing overhead amounts were equal. For this question only assumes that: i. Opening inventory is valued at R80 per unit ii. A direct costing system is used. The total contribution for Dakalo Ltd is: Select one: a. R b. R c. R d. None of the options e. R 3/24/24, 4:25 PM Question 17 Complete Marked out of 1.00 Dakalo Ltd, a manufacturer of beauty products, value its inventory using Firstin- first out (FIFO). The actual results for the 2024 financial year are the following Details R Sales Revenue Direct raw materials Direct labour Variable manufacturing overheads Fixed manufacturing overheads Variable selling cost 3 000 000 Fixed selling cost 5 000 000 Non-manufacturing cost The opening inventory is 120 000 units, actual production 2 000 000 units and sales 2 040 000 units. Budgeted and actual fixed manufacturing overhead amounts were equal. For this question only assume that: i. Opening inventory is valued at R110 per unit ii. An absorption costing system is used. The total gross profit for Dakalo Ltd is: Select one: a. R b. R c. R d. R e. None of the options 3/24/24, 4:25 PM Question 18 Complete Marked out of 1.00 Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Fixed manufacturing overheads R Set-up costs 480 000 Machine costs 1 600 500 Quality inspections 800 000 Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. Machine cost: Temba’s production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. Quality inspections: Every 10 Match ball and every 200 Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total set-up cost allocated to Training balls is: Select one: a. None of the options b. R320 000,00 c. R342 857,14 d. R400 000,00 e. R444 444,44 th th 3/24/24, 4:25 PM Question 19 Complete Marked out of 1.00 Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Fixed manufacturing overheads R Set-up costs 480 000 Machine costs 1 600 500 Quality inspections 800 000 Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. Machine cost: Temba’s production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. Quality inspections: Every 10 Match ball and every 200 Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total machine cost allocated to Match balls is: Select one: a. R800 250,00 b. R984 923,08 c. R266 750,00 d. R388 000,00 e. None of the options th th 3/24/24, 4:25 PM Question 20 Complete Marked out of 1.00 Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Activity area Fixed manufacturing overheads R Set-up costs 480 000 Machine costs 1 600 500 Quality inspections 800 000 Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. Machine cost: Temba’s production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. Quality inspections: Every 10 Match ball and every 200 Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total quality inspection cost activity rate is: Select one: a. R1,33 b. R64,00 c. None of the options d. R3 809,52 e. R266,67