QUESTION BANK
SUGGESTED SOLUTIONS
APPLICATION OF MANAGEMENT
ACCOUNTING TECHNIQUES
MAC3701
Department of Management Accounting
These suggested solutions to the question bank is only available in English.
You can find the related question bank on:
myUnisa/MAC3701-19-S1/Additional Resources/Question Bank
Define tomorrow. 1
, CONTENT
Page
1 LECTURERS AND CONTACT DETAILS..................................................................................... 3
2 SUGGESTED SOLUTIONS .......................................................................................................... 4
2.1 SOAPS LTD................................................................................................................................... 4
2.2 DELICIOUS CEREALS (PTY) LTD .............................................................................................. 8
2.3 KILO LTD..................................................................................................................................... 12
2.4 JUNIOR SPORTS LTD................................................................................................................ 16
2.5 CALCULUS LTD ......................................................................................................................... 22
2.6 MEHLARENG (PTY) LTD ........................................................................................................... 26
2.7 BEANCINO (PTY) LTD ............................................................................................................... 32
2.8 JJ BEVERAGES LTD ................................................................................................................. 36
2.9 HIGH RISE LTD........................................................................................................................... 39
2.10 TENNIS BALL (PTY) LTD........................................................................................................... 42
2.11 iNKUNZI TYRES (PTY) LTD....................................................................................................... 47
2.12 BUMBULO MILLING (PTY) LTD ................................................................................................ 51
2.13 CHEMICAL EXPERIMENTS COMPANY (PTY) LTD ................................................................ 55
2.14 ENERSOLAR (PTY) LTD............................................................................................................ 60
2.15 PEARS LTD................................................................................................................................. 66
2.16 DELIGHT SPREADS (PTY) LTD ................................................................................................ 73
2.17 TEDDY FRENZY LTD ................................................................................................................. 78
2.18 ZAM A-ZAM A (PTY) LTD............................................................................................................. 82
2.19 RAT A TEA (PTY) LTD ................................................................................................................ 87
2.20 MUFHIRIFHIRI BEEF (PTY) LTD ............................................................................................... 93
2.21 IMVULA (PTY) LTD..................................................................................................................... 99
2.22 BRIGHT & SHINE (PTY) LTD................................................................................................... 103
2.23 AQUA FIRST (PTY) LTD........................................................................................................... 111
2.24 ZAMBANI-CHIPS (PTY) LTD.................................................................................................... 117
2.25 S’KHOTHANE (PTY) LTD......................................................................................................... 122
2.26 TZANEEN TRAMPOLINES (PTY) LTD.................................................................................... 129
2.27 UGOGO BAKKER (PTY) LTD .................................................................................................. 140
2
,1 LECTURERS AND CONTACT DETAILS
Mr. Ndivha Mudau Mrs. Ismari Kirsten
Mr. Tebogo Mantloana Ms. Ayanda Matsane
Mrs. Janelle Verster
Please do not hesitate to consult lecturers by e-mail or personally (by prior arranged appointment only),
should you experience specific problems regarding the content of this course. Please have your study
material open when you contact us. Please note that enquiries with regard to matters not relating to the
content of the course (e.g. registrations, non-receipt of study material, enquiries in respect of exam
dates, venues, etc.) must not be directed to your lecturer but can be e-mailed to the appropriate
department’s e-mail address.
Whenever you write to a lecturer, please include your student number to enable the lecturer to help you
more effectively.
FACE-TO-FACE APPOINTMENTS THE WEEK BEFORE THE EXAMINATION
There will be no face-to-face appointments with students the week before the examination. This will
ensure lecturers are able to attend to all queries before the examination date.
TAKE NOTE!!
The majority of the questions from the related question bank are on same standard as the
examination. Students are therefore urged to utilise these questions and the suggested
solutions as a gauge for both the standard and the integration level of the forth-coming
examination. You are advised students to use these solutions as a learning and/or a guide on
improving their overall examination techniques including the presentation of answer(s).
3
, 2 SUGGESTED SOLUTIONS
2.1 SOAPS LTD
(a) Determine the budgeted variable overhead cost per product for both products
Hand washing powder = ((R8,66 / R5 ) X R1,75)) R3,03.
Auto washing powder = ((R12 / R5 ) X R1,75)) R4,20.
Variable overhead per labour hour R
Hand washing powder = (R8,66 X 10 000) 86 600
Auto washing powder = (R12 X 12 000) 144 000
Total budgeted overheads 230 600
Less: Fixed manufacturing overheads (150 000)
Budgeted variable overheads R80 600
Total budgeted labour hours = (R230 600/ R5 per hour ) 46 120
Budgeted variable overhead = (R80 600/ 46 120) R1,75 per labour hour
(b) Product mix that will maximise profit
Hand Auto
Contribution per unit R R
Selling price 55,00 75,00
Less: Direct material A (20,00) (30,00)
Less: Direct material B – Packet (10,00) (12,00)
Less: Direct labour (8,34) (10,00)
Less: Variable overheads (3,03) (4,20)
Less: Selling and distribution cost (1,00) (1,00)
Contribution R12,63 R17,80
Kg per unit (R20/10) and (R30/10) 2 3
Contribution per kg (R12,63/2) and (R17,80/3) R6,32 R5,93
Ranking 1 2
Required
Hand washing powder (10 000 X 2kg) 20 000
Auto washing powder (12 000 X 3kg) 36 000
Total required 56 000
Available direct material 50 000
Shortage 6 000
4
SUGGESTED SOLUTIONS
APPLICATION OF MANAGEMENT
ACCOUNTING TECHNIQUES
MAC3701
Department of Management Accounting
These suggested solutions to the question bank is only available in English.
You can find the related question bank on:
myUnisa/MAC3701-19-S1/Additional Resources/Question Bank
Define tomorrow. 1
, CONTENT
Page
1 LECTURERS AND CONTACT DETAILS..................................................................................... 3
2 SUGGESTED SOLUTIONS .......................................................................................................... 4
2.1 SOAPS LTD................................................................................................................................... 4
2.2 DELICIOUS CEREALS (PTY) LTD .............................................................................................. 8
2.3 KILO LTD..................................................................................................................................... 12
2.4 JUNIOR SPORTS LTD................................................................................................................ 16
2.5 CALCULUS LTD ......................................................................................................................... 22
2.6 MEHLARENG (PTY) LTD ........................................................................................................... 26
2.7 BEANCINO (PTY) LTD ............................................................................................................... 32
2.8 JJ BEVERAGES LTD ................................................................................................................. 36
2.9 HIGH RISE LTD........................................................................................................................... 39
2.10 TENNIS BALL (PTY) LTD........................................................................................................... 42
2.11 iNKUNZI TYRES (PTY) LTD....................................................................................................... 47
2.12 BUMBULO MILLING (PTY) LTD ................................................................................................ 51
2.13 CHEMICAL EXPERIMENTS COMPANY (PTY) LTD ................................................................ 55
2.14 ENERSOLAR (PTY) LTD............................................................................................................ 60
2.15 PEARS LTD................................................................................................................................. 66
2.16 DELIGHT SPREADS (PTY) LTD ................................................................................................ 73
2.17 TEDDY FRENZY LTD ................................................................................................................. 78
2.18 ZAM A-ZAM A (PTY) LTD............................................................................................................. 82
2.19 RAT A TEA (PTY) LTD ................................................................................................................ 87
2.20 MUFHIRIFHIRI BEEF (PTY) LTD ............................................................................................... 93
2.21 IMVULA (PTY) LTD..................................................................................................................... 99
2.22 BRIGHT & SHINE (PTY) LTD................................................................................................... 103
2.23 AQUA FIRST (PTY) LTD........................................................................................................... 111
2.24 ZAMBANI-CHIPS (PTY) LTD.................................................................................................... 117
2.25 S’KHOTHANE (PTY) LTD......................................................................................................... 122
2.26 TZANEEN TRAMPOLINES (PTY) LTD.................................................................................... 129
2.27 UGOGO BAKKER (PTY) LTD .................................................................................................. 140
2
,1 LECTURERS AND CONTACT DETAILS
Mr. Ndivha Mudau Mrs. Ismari Kirsten
Mr. Tebogo Mantloana Ms. Ayanda Matsane
Mrs. Janelle Verster
Please do not hesitate to consult lecturers by e-mail or personally (by prior arranged appointment only),
should you experience specific problems regarding the content of this course. Please have your study
material open when you contact us. Please note that enquiries with regard to matters not relating to the
content of the course (e.g. registrations, non-receipt of study material, enquiries in respect of exam
dates, venues, etc.) must not be directed to your lecturer but can be e-mailed to the appropriate
department’s e-mail address.
Whenever you write to a lecturer, please include your student number to enable the lecturer to help you
more effectively.
FACE-TO-FACE APPOINTMENTS THE WEEK BEFORE THE EXAMINATION
There will be no face-to-face appointments with students the week before the examination. This will
ensure lecturers are able to attend to all queries before the examination date.
TAKE NOTE!!
The majority of the questions from the related question bank are on same standard as the
examination. Students are therefore urged to utilise these questions and the suggested
solutions as a gauge for both the standard and the integration level of the forth-coming
examination. You are advised students to use these solutions as a learning and/or a guide on
improving their overall examination techniques including the presentation of answer(s).
3
, 2 SUGGESTED SOLUTIONS
2.1 SOAPS LTD
(a) Determine the budgeted variable overhead cost per product for both products
Hand washing powder = ((R8,66 / R5 ) X R1,75)) R3,03.
Auto washing powder = ((R12 / R5 ) X R1,75)) R4,20.
Variable overhead per labour hour R
Hand washing powder = (R8,66 X 10 000) 86 600
Auto washing powder = (R12 X 12 000) 144 000
Total budgeted overheads 230 600
Less: Fixed manufacturing overheads (150 000)
Budgeted variable overheads R80 600
Total budgeted labour hours = (R230 600/ R5 per hour ) 46 120
Budgeted variable overhead = (R80 600/ 46 120) R1,75 per labour hour
(b) Product mix that will maximise profit
Hand Auto
Contribution per unit R R
Selling price 55,00 75,00
Less: Direct material A (20,00) (30,00)
Less: Direct material B – Packet (10,00) (12,00)
Less: Direct labour (8,34) (10,00)
Less: Variable overheads (3,03) (4,20)
Less: Selling and distribution cost (1,00) (1,00)
Contribution R12,63 R17,80
Kg per unit (R20/10) and (R30/10) 2 3
Contribution per kg (R12,63/2) and (R17,80/3) R6,32 R5,93
Ranking 1 2
Required
Hand washing powder (10 000 X 2kg) 20 000
Auto washing powder (12 000 X 3kg) 36 000
Total required 56 000
Available direct material 50 000
Shortage 6 000
4
