MAC2601 EXAM PACK
2026
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|31863004
CONTENTS
TIME
QUESTION TOPIC MARKS
(MINUTES)
1 Direct and Absorption Costing and Sensitivity
30 54
Analysis
2 Activity-Based Costing (ABC) 20 36
3 Budgeting and Budgetary Control; and Ethics 30 54
4 Standard Costing 20 36
TOTAL 100 180
QUESTION 1 (30 MARKS) (54 MINUTES)
(a) Prepare the actual statement of comprehensive income for the year ended 30 April 2025 f
Scientific Calculator using absorption costing principles. (12 Marks)
Actual Statement of Comprehensive Income for the year ended 30 April 2025: Absorption
Costing Method.
Scientific
calculator
R
Sales (3 800 x R760) 2 888 000
Less: Cost of sales (1 755 600)
Opening inventory 0
Direct material (4 500 x R200) Direct 900 000
labour (4 500 x R150) 675 000
Other direct manufacturing costs (packaging) 9 000
((4 500 ÷ 20) x R40) OR (4 500 x
(R40 ÷ 20))
OR (4 500 x R2)
Variable manufacturing overheads 270 000
(4 500 x R60)
Applied fixed manufacturing overheads 25 000
((R500 000 ÷ (5 000 + 5 000)) x 4 500)
OR (R50 x 4 500)
, lOMoARcPSD|31863004
Cost of current production 2 079 000
Less: Closing inventory (323 400)
(R2 079 000 ÷ 4 500 x 700)
Unadjusted Gross profit 1 132 400
Less: Non-manufacturing costs (144 400)
Variable: commission (R2 888 000 x 5%) 144 400
Net profit R 988 000
Calculations:
Given
Unit calculations:
2025
Opening inventory -
Add: Current production 4 500
Units available for sale 4 500
Less: Units sold (3 800)
Closing inventory 700
, lOMoARcPSD|31863004
(b) Calculate the value of the closing inventory of Scientific Calculator be on 30 April 2025 if
direct costing was used in (a) above. (4 Marks)
Scientific calculator closing inventory: variable costing
R
Absorption costing inventory value 323 400
Fixed manufacturing costs in inventory (35 000)
(R50 per unit x 700 units)
Direct costing inventory value 288 400
Calculations:
Given
From (a)
(c) Briefly explain why the budgeted fixed manufacturing overhead allocation rate
is used rather than the actual fixed manufacturing overhead rate when product
cost is determined under absorption costing. (2 Marks)
Product costing information is needed for decision-makingpurposes.
The overhead costs per unit is required so that the total production costs
can be determined and selling prices or profitability determined.
The actual overhead data is only available at/after the year-end.
Decisions cannot be delayed until year-end (it will be too late).
Overhead per unit fluctuates greatly as output fluctuates.
(d) Calculate the over/under recovered overheads for Calculate-it (Pty) Ltd for the financial
year and prepare a journal entry to show how this over/under recovery would normally be
dealt with in Calculate-it (Pty) Ltd’s books at the end of the financial year ended 30 April
2025. (4 Marks)
2026
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|31863004
CONTENTS
TIME
QUESTION TOPIC MARKS
(MINUTES)
1 Direct and Absorption Costing and Sensitivity
30 54
Analysis
2 Activity-Based Costing (ABC) 20 36
3 Budgeting and Budgetary Control; and Ethics 30 54
4 Standard Costing 20 36
TOTAL 100 180
QUESTION 1 (30 MARKS) (54 MINUTES)
(a) Prepare the actual statement of comprehensive income for the year ended 30 April 2025 f
Scientific Calculator using absorption costing principles. (12 Marks)
Actual Statement of Comprehensive Income for the year ended 30 April 2025: Absorption
Costing Method.
Scientific
calculator
R
Sales (3 800 x R760) 2 888 000
Less: Cost of sales (1 755 600)
Opening inventory 0
Direct material (4 500 x R200) Direct 900 000
labour (4 500 x R150) 675 000
Other direct manufacturing costs (packaging) 9 000
((4 500 ÷ 20) x R40) OR (4 500 x
(R40 ÷ 20))
OR (4 500 x R2)
Variable manufacturing overheads 270 000
(4 500 x R60)
Applied fixed manufacturing overheads 25 000
((R500 000 ÷ (5 000 + 5 000)) x 4 500)
OR (R50 x 4 500)
, lOMoARcPSD|31863004
Cost of current production 2 079 000
Less: Closing inventory (323 400)
(R2 079 000 ÷ 4 500 x 700)
Unadjusted Gross profit 1 132 400
Less: Non-manufacturing costs (144 400)
Variable: commission (R2 888 000 x 5%) 144 400
Net profit R 988 000
Calculations:
Given
Unit calculations:
2025
Opening inventory -
Add: Current production 4 500
Units available for sale 4 500
Less: Units sold (3 800)
Closing inventory 700
, lOMoARcPSD|31863004
(b) Calculate the value of the closing inventory of Scientific Calculator be on 30 April 2025 if
direct costing was used in (a) above. (4 Marks)
Scientific calculator closing inventory: variable costing
R
Absorption costing inventory value 323 400
Fixed manufacturing costs in inventory (35 000)
(R50 per unit x 700 units)
Direct costing inventory value 288 400
Calculations:
Given
From (a)
(c) Briefly explain why the budgeted fixed manufacturing overhead allocation rate
is used rather than the actual fixed manufacturing overhead rate when product
cost is determined under absorption costing. (2 Marks)
Product costing information is needed for decision-makingpurposes.
The overhead costs per unit is required so that the total production costs
can be determined and selling prices or profitability determined.
The actual overhead data is only available at/after the year-end.
Decisions cannot be delayed until year-end (it will be too late).
Overhead per unit fluctuates greatly as output fluctuates.
(d) Calculate the over/under recovered overheads for Calculate-it (Pty) Ltd for the financial
year and prepare a journal entry to show how this over/under recovery would normally be
dealt with in Calculate-it (Pty) Ltd’s books at the end of the financial year ended 30 April
2025. (4 Marks)
