FINAL ONLINE SUMMATIVE ASSESSMENT
Bachelor of Business Administration
Bachelor of Commerce in Entrepreneurship
Bachelor of Commerce in Retail Management
PROGRAMME Bachelor of Commerce in Project Management
Bachelor of Commerce in Marketing Management
Bachelor of Commerce in Supply Chain Management
Bachelor of Commerce in Information and Technology Management
MODULE Management Accounting
YEAR Two (2)
INTAKE January 2024 Semester 1
DATE 18 June 2024
TOTAL MARKS 100
, Answer ALL the questions. (100 MARKS)
QUESTION 1 (20 Marks)
1.1
REQUIRED
Calculate the remuneration of Molly for 08 February 2024 using Taylor’s differential piecework system.
(4 marks)
INFORMATION
The following information relates to the remuneration of Molly for 08 February 2024:
Standard time allowed 20 minutes per unit
Standard workday 8 hours
Normal wage rate R120 per hour
Premium 90% of piecework rate if below standard
110% of piecework rate if standard or above standard
Molly’s production for the day 27 units
1.2
REQUIRED
Use the information provided below to calculate the economic order quantity.
(4 marks)
INFORMATION
The average monthly usage of an item that costs R2 each and sells for R4.50 each is 600 units. The
holding cost is 10% of the cost of the item. The cost to place an order is R20.
1.3
REQUIRED
Calculate the earnings of Amanda for the day using the straight piecework incentive scheme.
(4 marks)
INFORMATION
The standard time to produce a product is 10 minutes. Amanda is paid R120 per hour and the normal
working day is 8 hours. If Amanda produces more than her quota, she receives 1.5 times the hourly
rate on the additional output. Amanda produced 54 units for the day.
,1.4
REQUIRED
Complete the following table that would reflect the value of issues to production and inventory balances
using the first-in-first out method of inventory valuation:
Purchases Issues/Returns Balance
Date Quantity Price Amount Quantity Price Amount Quantity Price Amount
(4 marks)
INFORMATION
The transactions of Kerman Manufacturers for January 2024 are as follows:
January Transaction Units Price per unit
01 Opening inventory 4 000 R3.00
06 Purchased from a supplier 1 600 R3.20
20 Purchased from a supplier 3 000 R3.30
07 Issued to production 3 200 ?
27 Issued to production 4 000 ?
1.5
REQUIRED
Use the information provided below to determine the expected productive working hours of Anna for
2023. Commence your calculations with the number of days in the year.
(4 marks)
INFORMATION
Anna worked for 9 hours per day from Monday to Friday during 2023. She is entitled to 28 days paid
vacation leave. There were 13 public holidays, 12 of which fell on weekdays. The business is closed
on public holidays.
, QUESTION 2 (20 Marks)
2.1
REQUIRED
Study the information provided below and prepare the Income Statement for the year
ended 31 December 2023 using the marginal costing method. (11 marks)
INFORMATION
Marburg Manufacturers started operations on 02 January 2023. It produced 50 000 units of the only
product that it manufactures and sold 80% of the units produced at a price of R150 per unit during
2023. Variable manufacturing costs amounted to R50 per unit and variable marketing costs amounted
to R30 per unit. Fixed costs totalled R1 200 000 of which 70% was for manufacturing and 30% was for
administration and marketing.
2.2
REQUIRED
Use the information given below to calculate the following variances. In each case also state whether
the variance is favourable or unfavourable.
2.2.1 Material quantity variance (3 marks)
2.2.2 Total labour variance (without using the labour rate and efficiency variances) (3 marks)
2.2.3 Variable manufacturing overheads expenditure variance (3 marks)
INFORMATION
Sona Manufacturers uses the standard costing system. The standards are as follows:
Direct material 3 kg @ R8 per kg
Labour 5 hours at R100 per hour
Variable manufacturing overheads R20 per labour hour
Fixed overheads R30 000
Normal production 19 000 units
Actual information for March 2024:
Direct material used 61 000 kg at R7.80 per kg
Labour 98 000 hours at R105 per hour
Variable manufacturing overheads R1 862 000
Fixed overheads R32 000
Actual production 20 000 units
Bachelor of Business Administration
Bachelor of Commerce in Entrepreneurship
Bachelor of Commerce in Retail Management
PROGRAMME Bachelor of Commerce in Project Management
Bachelor of Commerce in Marketing Management
Bachelor of Commerce in Supply Chain Management
Bachelor of Commerce in Information and Technology Management
MODULE Management Accounting
YEAR Two (2)
INTAKE January 2024 Semester 1
DATE 18 June 2024
TOTAL MARKS 100
, Answer ALL the questions. (100 MARKS)
QUESTION 1 (20 Marks)
1.1
REQUIRED
Calculate the remuneration of Molly for 08 February 2024 using Taylor’s differential piecework system.
(4 marks)
INFORMATION
The following information relates to the remuneration of Molly for 08 February 2024:
Standard time allowed 20 minutes per unit
Standard workday 8 hours
Normal wage rate R120 per hour
Premium 90% of piecework rate if below standard
110% of piecework rate if standard or above standard
Molly’s production for the day 27 units
1.2
REQUIRED
Use the information provided below to calculate the economic order quantity.
(4 marks)
INFORMATION
The average monthly usage of an item that costs R2 each and sells for R4.50 each is 600 units. The
holding cost is 10% of the cost of the item. The cost to place an order is R20.
1.3
REQUIRED
Calculate the earnings of Amanda for the day using the straight piecework incentive scheme.
(4 marks)
INFORMATION
The standard time to produce a product is 10 minutes. Amanda is paid R120 per hour and the normal
working day is 8 hours. If Amanda produces more than her quota, she receives 1.5 times the hourly
rate on the additional output. Amanda produced 54 units for the day.
,1.4
REQUIRED
Complete the following table that would reflect the value of issues to production and inventory balances
using the first-in-first out method of inventory valuation:
Purchases Issues/Returns Balance
Date Quantity Price Amount Quantity Price Amount Quantity Price Amount
(4 marks)
INFORMATION
The transactions of Kerman Manufacturers for January 2024 are as follows:
January Transaction Units Price per unit
01 Opening inventory 4 000 R3.00
06 Purchased from a supplier 1 600 R3.20
20 Purchased from a supplier 3 000 R3.30
07 Issued to production 3 200 ?
27 Issued to production 4 000 ?
1.5
REQUIRED
Use the information provided below to determine the expected productive working hours of Anna for
2023. Commence your calculations with the number of days in the year.
(4 marks)
INFORMATION
Anna worked for 9 hours per day from Monday to Friday during 2023. She is entitled to 28 days paid
vacation leave. There were 13 public holidays, 12 of which fell on weekdays. The business is closed
on public holidays.
, QUESTION 2 (20 Marks)
2.1
REQUIRED
Study the information provided below and prepare the Income Statement for the year
ended 31 December 2023 using the marginal costing method. (11 marks)
INFORMATION
Marburg Manufacturers started operations on 02 January 2023. It produced 50 000 units of the only
product that it manufactures and sold 80% of the units produced at a price of R150 per unit during
2023. Variable manufacturing costs amounted to R50 per unit and variable marketing costs amounted
to R30 per unit. Fixed costs totalled R1 200 000 of which 70% was for manufacturing and 30% was for
administration and marketing.
2.2
REQUIRED
Use the information given below to calculate the following variances. In each case also state whether
the variance is favourable or unfavourable.
2.2.1 Material quantity variance (3 marks)
2.2.2 Total labour variance (without using the labour rate and efficiency variances) (3 marks)
2.2.3 Variable manufacturing overheads expenditure variance (3 marks)
INFORMATION
Sona Manufacturers uses the standard costing system. The standards are as follows:
Direct material 3 kg @ R8 per kg
Labour 5 hours at R100 per hour
Variable manufacturing overheads R20 per labour hour
Fixed overheads R30 000
Normal production 19 000 units
Actual information for March 2024:
Direct material used 61 000 kg at R7.80 per kg
Labour 98 000 hours at R105 per hour
Variable manufacturing overheads R1 862 000
Fixed overheads R32 000
Actual production 20 000 units
