EXCELCENTRE LEARNING INSTITUTE 061 043 9805
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
MAC2601
September 2026 Practice Assessment
Suggested Solution with Full Workings
QUESTION 1 — Direct and Absorption Costing (24 marks)
Working 1: Splitting manufacturing overheads into fixed and variable (high-low
method)
Used to budget the 2025 manufacturing overhead cost per unit, based on 2023 and
2024 actual data.
Total MOH (R) Units
2023 (high) 1 000 000 25 000
2024 (low) 800 000 15 000
Difference 200 000 10 000
Variable manufacturing overhead rate = R200 000 ÷ 10 000 units = R20 per unit
Fixed manufacturing overhead (in total) = R800 000 – (20 × 15 000) = R800 000 –
R300 000 = R500 000
Check using 2023: R1 000 000 – (20 × 25 000) = R1 000 000 – R500 000 = R500
000
As neither the variable rate nor the total fixed cost was expected to increase into
2025, the 2025 budget uses: Variable MOH = R20/unit; Total fixed MOH = R500
000.
Working 2: Predetermined fixed manufacturing overhead rate for 2025
Education is the most powerful weapon which you can use to change the world
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
MAC2601
September 2026 Practice Assessment
Suggested Solution with Full Workings
QUESTION 1 — Direct and Absorption Costing (24 marks)
Working 1: Splitting manufacturing overheads into fixed and variable (high-low
method)
Used to budget the 2025 manufacturing overhead cost per unit, based on 2023 and
2024 actual data.
Total MOH (R) Units
2023 (high) 1 000 000 25 000
2024 (low) 800 000 15 000
Difference 200 000 10 000
Variable manufacturing overhead rate = R200 000 ÷ 10 000 units = R20 per unit
Fixed manufacturing overhead (in total) = R800 000 – (20 × 15 000) = R800 000 –
R300 000 = R500 000
Check using 2023: R1 000 000 – (20 × 25 000) = R1 000 000 – R500 000 = R500
000
As neither the variable rate nor the total fixed cost was expected to increase into
2025, the 2025 budget uses: Variable MOH = R20/unit; Total fixed MOH = R500
000.
Working 2: Predetermined fixed manufacturing overhead rate for 2025
Education is the most powerful weapon which you can use to change the world
