Exam (elaborations)
MAC3701 FI CONCESSION EXAM 2024
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THIS DOCUMENT CONTAINS CAREFULLY WORKED OUT MAC3701 FI CONCESSION EXAM 2024. USE IT FOR COMPARISON
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(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%
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