Exam (elaborations)
MAC3761 EXAM SEM 2 OF 2024 EXPECTED SOLUTIONS
- Institution
- University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS COMPARATIVE MAC3761 EXAM SEM 2 OF 2024 EXPECTED SOLUTIONS USE IT AS A GUIDE ONLY
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Question 1a)
full manufacturing cost per dish-set:
4.5 kg of round steel at R40/kg(4.5*40) 180
1 low-noise block downconverter (LNB 144
1 mounting bracket 62
150 direct labor assembly minutes (2.5
hours) at R30/hour 75
Fixed manufacturing overheads
(FMO)(R6.6 million / 1.1 million direct
labor assembly hours),FMO per dish-set
(2.5×6) 15
476
b)
The Financial Manager’s statement suggests that the Set-top Division would
be paying more if the internal transfer price was based on the minimum
transfer price principles
The external market selling price
510.00
Variable manufacturing cost
(180+144+62+75) (461.00)
Selling costs for external sales
(27.50) (only applicable to external sales)
Contribution margin per external sale
21.50
, Minimum Transfer Price (based on opportunity cost): The minimum
transfer price should be the variable manufacturing cost (R461) plus the
opportunity cost (R21.50). Thus:
variable manufacturing cost 461.00
opportunity cost 21.50
Minimum transfer price 482.50
Financial Manager’s statement is correct, as the minimum transfer price of R482.50 is higher than the
current transfer price of R476. The Set-top Division would pay more if the minimum transfer price
principle was applied
c)
DFtv:
Selling price
1,550.00
Variable manufacturing cost
(867.00)
Dish-set cost
(470.00)
Variable selling cost
(7.00)
Contribution per uni
206.00
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