MAC3701 Assignment 1 semester 2 due on 21 August 2023

8/20/23, 11:55 PM Assessment 1: Attempt review



QUIZ




Started on Sunday, 20 August 2023, 11:04 PM
State Finished
Completed on Sunday, 20 August 2023, 11:55 PM
Time taken 51 mins 4 secs

Question 1
Complete

Marked out of 1.00




Letsatsi (Pty) Ltd is a manufacturer of solar geysers. The company manufactures two types of solar
geysers, Low-pressure (“LowP”) and High-pressure (“HighP”) solar geysers. Letsatsi makes use of
an absorption costing system and all types of inventory are valued using the first-in-first-out method
(FIFO)The following information is available for the financial year ended 30 June 2023:
Details LowP HighP
Annual budgeted sales and production units 28 000 30 000
Annual actual sales and production units 25 000 34 000
Standard labour clock minutes per unit 120 150
Actual labour clock minutes per unit 108 156


1. There was no actual and budgeted opening inventory of any type for the 2023 financial year.
2. No actual or budgeted normal material losses occurred in the production process.
3. Letsatsi’s fixed manufacturing overheads (FMO) are allocated based on the budgeted direct labour
clock hours. The total budgeted FMO was R655 000 per month and the total actual FMO for the
year was R9 200 000.
4. The budgeted other fixed administrative costs for the division were R2 358 000 per annum and the
actual other fixed administrative costs were R2 400 000.



The budgeted fixed manufacturing overheads allocation rate per direct labour clock hour for the
2023 financial year is:


Select one:
a. R60
b. R78

c. R61,22

d. R79,58

e. None of the options




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