MAC3701
Assignment 2 Semester 2 2025
2 2025
Unique Number:
Due date: 11 September 2025
PART A
(A-a) Critical Evaluation of Income Statement
Item Given Correct Agree/Disagree Reason
Amount Amount
Sales
Gearboxes R45,000,000 R45,000,000 Agree 10,000 × R4,500 =
Couplings R38,400,000 R38,400,000 Agree 32,000 × R1,200 =
Direct
Material
Gearboxes R12,708,000 R12,708,000 Agree 12,000 units × R1,059 =
R12,708,000
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
Couplings R9,252,000 R9,252,000 Agree 36,000 units × R257 = R9,252,000
Standard Cost Verification
Gearbox Standard Cost:
Material Quantity Rate Cost
Steel 24 kg R15/kg R360
Aluminium 8 kg R44/kg R352
Bearings 4 R50 each R200
Lubricant 2L R44/L R88
Sealing rings 12 rings R6/ring R72
TOTAL R1,072
Variance (Gearboxes): R1,072 – R1,059 = R13 unfavourable per unit
Coupling Standard Cost:
Material Quantity Rate Cost
Steel 6 kg R15/kg R90
Aluminium 2 kg R44/kg R88
Assignment 2 Semester 2 2025
2 2025
Unique Number:
Due date: 11 September 2025
PART A
(A-a) Critical Evaluation of Income Statement
Item Given Correct Agree/Disagree Reason
Amount Amount
Sales
Gearboxes R45,000,000 R45,000,000 Agree 10,000 × R4,500 =
Couplings R38,400,000 R38,400,000 Agree 32,000 × R1,200 =
Direct
Material
Gearboxes R12,708,000 R12,708,000 Agree 12,000 units × R1,059 =
R12,708,000
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
Couplings R9,252,000 R9,252,000 Agree 36,000 units × R257 = R9,252,000
Standard Cost Verification
Gearbox Standard Cost:
Material Quantity Rate Cost
Steel 24 kg R15/kg R360
Aluminium 8 kg R44/kg R352
Bearings 4 R50 each R200
Lubricant 2L R44/L R88
Sealing rings 12 rings R6/ring R72
TOTAL R1,072
Variance (Gearboxes): R1,072 – R1,059 = R13 unfavourable per unit
Coupling Standard Cost:
Material Quantity Rate Cost
Steel 6 kg R15/kg R90
Aluminium 2 kg R44/kg R88
