MAC2601/103
MAC2601
ASSIGNMENT 01
SEMESTER 1 AND 2
YEAR 2021
PLEASE NOTE: ALL WORKINGS ARE SHOWN FOR BETTER UNDERSTANDING!!!
1
, MAC2601/103
Assignment 01/2021, SEMESTER 1 AND 2 – MULTIPLE-CHOICE
QUESTION 1
Which one of the following cannot be a cost object?
(1) The Western Cape region of an organisation that has operations in each of the nine
provinces in South Africa.
(2) The sales value of one unit of a particular product.
(3) An order from a customer for 50 000 units of an organisation’s product.
(4) A construction project undertaken on behalf of the South African Government.
QUESTION 2
Which one of the following cannot be both a manufacturing cost and a variable cost?
(1) Direct material costs
(2) Direct labour costs
(3) Variable manufacturing overheads
(4) Variable selling costs
Use the following information to answer questions 3, 4, and 5:
Buzzy Bee (Pty) Ltd (“Buzzy Bee”) specialises in the manufacturing and selling of honey-based
skincare products. Buzzy Bee pays a contractor a semi-variable fee for delivering its products. The
following actual information is available for the six-month period ended 31 August 2020 and
indicates the number of products delivered per month as well as the associated total monthly semi-
variable delivery costs.
Month Delivery volume in Total delivery costs in Rand
units
March 18 000 R212 000
April 17 600 R207 600
May 19 500 R217 500
June 16 100 R200 000
July 16 000 R200 000
August 17 200 R206 300
The company uses this historical actual information as basis for its budget for the next six months
ending 28 February 2021. For the budget period, no increases in variable delivery cost per unit and
monthly fixed delivery cost are expected. After the six months budget period the delivery contract
will be reviewed.
2
, MAC2601/103
QUESTION 3
The budgeted variable delivery cost per unit for the six-month period ending 28 February 2021,
using the high-low method, is estimated at per unit (rounded to two decimal places).
(1) R5,15
(2) R5,00
(3) R11,76
(4) R11,91
CALCULATION:
High-low method
217 500 – 200 000
19 500 – 16 000
= R5
QUESTION 4
The budgeted fixed delivery costs in total for the six-month period ending 28 February 2021,
using the high-low method, is estimated at (rounded to the nearest Rand).
(1) R720 000
(2) R702 794
(3) R120 000
(4) R17 500
CALCULATION:
217 500 – (19 500 X 5)
=R 120 000
3
MAC2601
ASSIGNMENT 01
SEMESTER 1 AND 2
YEAR 2021
PLEASE NOTE: ALL WORKINGS ARE SHOWN FOR BETTER UNDERSTANDING!!!
1
, MAC2601/103
Assignment 01/2021, SEMESTER 1 AND 2 – MULTIPLE-CHOICE
QUESTION 1
Which one of the following cannot be a cost object?
(1) The Western Cape region of an organisation that has operations in each of the nine
provinces in South Africa.
(2) The sales value of one unit of a particular product.
(3) An order from a customer for 50 000 units of an organisation’s product.
(4) A construction project undertaken on behalf of the South African Government.
QUESTION 2
Which one of the following cannot be both a manufacturing cost and a variable cost?
(1) Direct material costs
(2) Direct labour costs
(3) Variable manufacturing overheads
(4) Variable selling costs
Use the following information to answer questions 3, 4, and 5:
Buzzy Bee (Pty) Ltd (“Buzzy Bee”) specialises in the manufacturing and selling of honey-based
skincare products. Buzzy Bee pays a contractor a semi-variable fee for delivering its products. The
following actual information is available for the six-month period ended 31 August 2020 and
indicates the number of products delivered per month as well as the associated total monthly semi-
variable delivery costs.
Month Delivery volume in Total delivery costs in Rand
units
March 18 000 R212 000
April 17 600 R207 600
May 19 500 R217 500
June 16 100 R200 000
July 16 000 R200 000
August 17 200 R206 300
The company uses this historical actual information as basis for its budget for the next six months
ending 28 February 2021. For the budget period, no increases in variable delivery cost per unit and
monthly fixed delivery cost are expected. After the six months budget period the delivery contract
will be reviewed.
2
, MAC2601/103
QUESTION 3
The budgeted variable delivery cost per unit for the six-month period ending 28 February 2021,
using the high-low method, is estimated at per unit (rounded to two decimal places).
(1) R5,15
(2) R5,00
(3) R11,76
(4) R11,91
CALCULATION:
High-low method
217 500 – 200 000
19 500 – 16 000
= R5
QUESTION 4
The budgeted fixed delivery costs in total for the six-month period ending 28 February 2021,
using the high-low method, is estimated at (rounded to the nearest Rand).
(1) R720 000
(2) R702 794
(3) R120 000
(4) R17 500
CALCULATION:
217 500 – (19 500 X 5)
=R 120 000
3
