MAC3701 Assignment 2 Semester 2 2024

MAC 3701
ASSIGNMENT 2




Managerial accounting- 083 385 1178




EXPERT ACADEMY
Expert

, PART A

Part A - (a) Sales Volume Variance Calculation:

1. Deluxe Laptops:

 Budgeted Sales: 57,200 units
 Actual Sales: 75% of budgeted = 42,900 units
 Budgeted Contribution Margin: R8,400

Sales Volume Variance for Deluxe
= (Actual Sales − Budgeted Sales) × Budgeted Contribution Margin
= (42,900 − 57,200) × 8,400 = -14300X8400=-120 120 000

2. Elite Laptops:
 Budgeted Sales: 25,800 units
 Actual Sales: Total company sales - Deluxe sales = 62,500 - 42,900 =
19,600 units
 Budgeted Contribution Margin: R8,700
Sales Volume Variance for Elite
= (Actual Sales − Budgeted Sales) × Budgeted Contribution Margin
= (19,600 − 25,800) × 8,700 = −6,200 × 8,700 = −R53,940,000



3. Total Sales Volume Variance:
Total Sales Volume Variance = − R120,120,000 + (−R53,940,000) = −R174,060,000

Part A - (b) Direct Material Purchase Price Variance Calculation:

1. Aluminium:

 Standard Price: R45 per kg
 Actual Price: R1,032,000/21,500 kg=R48 per kg
 Actual Quantity Purchased: 21,500 kg

Purchase Price Variance for Aluminium
= (Standard Price − Actual Price) × Actual Quantity Purchased
= (R45 − R48) × 21,500 = −R64,500

2. Magnesium:
 Standard Price: R53 per kg
 Actual Price: R467,500/8,500 kg=R55 per kg
 Actual Quantity Purchased: 8,500 kg
Purchase Price Variance for Magnesium
= (Standard Price − Actual Price) × Actual Quantity Purchased