MAC3701 ASSIGNMENT 2 SEM 1 OF 2026 EXPECTED SOLUTIONS.

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, MAC3701 Assessment 2 — S1 2026: Full Solutions


PART A — Processing Division (PD), December 2025

Working Notes
Output quantities:

VCO: 220 000 × 0,35 = 77 000 litres
FCWater: 220 000 × 0,45 = 99 000 litres
Husk: 220 000 × 500g = 110 000 kg


Total Joint Costs:

Component Calculation R

Raw materials 220 000 × R18 3 960 000

VMO (220 000 ÷ 500) × R440 = 440 batches 193 600

Direct labour 220 000 × (12/60) × R90 = 44 000 hrs × R90 3 960 000

FMO (actual) — 150 000

Total joint costs 8 263 600

Less: Husk NRV (by-product) 110 000 × (R5,00 − R1,20) (418 000)

Net joint costs to allocate 7 845 600



Physical measure allocation (split-off):

Total: VCO 77 000L + FCWater 99 000L = 176 000L
VCO: 77 000/176 000 × R7 845 600 = R3 432 450
FCWater: 99 000/176 000 × R7 845 600 = R4 413 150


Distribution (regression): y = 0,75(176 000) + 18 000 = R150 000

VCO: 0,75 × 77 000 + (77/176 × 18 000) = R57 750 + R7 875 = R65 625
FCWater: 0,75 × 99 000 + (99/176 × 18 000) = R74 250 + R10 125 = R84 375