Summary MAC3701 EXAM ANSWERS WRITTEN 20 MAY 2026 COMPLETE ANSWERS DISTINCTION GUARANTEED

MAC3701 June 2026 – SOLUTION




PART A: Income Statement (Detailed)
Item Gel Powder Total

Revenue 18 360 000 10 800 000 29 160 000

Joint Costs (16 980 000) (11 320 000) (28 300 000)

Further Processing (360 000) - (360 000)

Distribution (847 500) (678 000) (1 525 500)

Profit before admin 172 500 (1 198 000) (1 025 500)

Add: Residue profit = 600 000

Net loss after admin = (1 763 000)




PART B: Variances


GM Sales Volume Variance: (18 000 – 16 000) × 330 = 660 000 F



SG Sales Volume Variance: (10 000 – 9 000) × 195 = 195 000 F



Additives Price Variance: (65 – 60) × 8 500 = 42 500 A



Mix Variance = 16 000 A