MAC1501 Assignment 1 Semester 1 2026 - Due 9 April 2026 (DISTINCTION)

MAC1501 Assignment 1 Semester 1 2026 QUESTION 1 (15 marks, 18 minutes) This question consists of two parts: Part A and Part B. Answer each part separately. PART A (5 marks, 6 minutes) For each of the questions below, read carefully through the information provided and select only the most correct option as your answer, as an example A5 (a) A1 Complete the following statement: Total _____ costs vary in _____ to changes in production. (a) fixed; a constant manner (b) variable; direct proportion (c) fixed; proportion (d) variable; an inverse manner A2 Cost assignment refers to the _____ of product costs to the cost of goods manufactured. (a) direct tracing (b) allocation PART B (10 marks, 12 minutes) Bonakude (Pty) Ltd manufactures and sells television sets in South Africa and neighbouring countries. The estimated total costs for the company when operating at a production and sales level of 500 units are as follows: R Prime costs …………………………………………………………………………… 1 070 000 Conversion costs …………………………………………………………………….. 950 000 Total manufacturing costs …………………………………………………………… 1 590 000 Selling and administrative costs (70% fixed) ……………………………………… 480 000 Additional information: Manufacturing overheads behaviour: • 60% variable • 40% fixed REQUIRED: QUESTION 1, PART B Calculate the following estimated costs: (B1) Direct materials (2) (B2) Direct labour (2) (B3) Total variable costs per unit (6) Total marks for question 1 Part B 10 QUESTION 2 (15 marks, 18 minutes) This question consists of two parts: Part A and Part B. Answer each part separately. PART A (6 marks, 7 minutes) Leta Limited produces and sells television mounting brackets. The flexible budget of Leta Limited indicates that the cost per unit of mounting brackets is R190 when 3 000 units are produced and R170 when 8 000 units are produced. These activities represent the highest and lowest. ……………… REQUIRED: QUESTION 2, PART A (A1) Calculate the variable cost per unit Use the high-low method (3) (A2) Calculate the total fixed costs (3) Total marks for question 2, Part A [6]