MAC3701 Assignment 2 2026 - Distinction | Due 14 September 2026

Assessment 2_S2_2026 QUESTION 1 (100 Marks; 180 Minutes) The Company information below applies to Parts A, B, C, D, and E of the assessment question paper. The additional information provided in each Part only applies to that part of the assessment question paper. For each Part below, you must: • Clearly show all your calculations in detail (marks are awarded for calculations); • Where necessary, indicate irrelevant amounts/adjustments with an R0 (nil-value); • Round all your workings to two decimals, except where otherwise stated, and • Ignore the time value of money and all taxation implications. Company information VoltAfrica Mobility (Pty) Ltd (VAM) is a South African manufacturer of electric motor vehicles with its main production facility located in Rosslyn, Pretoria. The company operates through two autonomous divisions that report directly to a central Head Office (HO). It supplies both local and international markets in the highly regulated automotive industry. VAM uses an absorption costing system, applies the first-in-first-out method to inventory and has a 31 December financial year-end. 1. ElectraDrive Vehicles Division (EVD) The ElectraDrive Vehicles Division (EVD) produces two vehicle models: Urban, a compact city vehicle, and Explorer, a larger electric sport utility vehicle (SUV). The manufacturing process involves installing lithium-ion battery packs, electronic control systems, and other direct materials (tyres, glass and seats) into locally manufactured vehicle bodies. Although other direct materials, such as tyres, glass, and seats, are purchased locally, battery cells and electronic components are imported and paid for in US dollars. 2. Precision Bodyworks Division (PBD) The Precision Bodyworks Division (PBD) specialises in manufacturing premium, custom-designed vehicle bodies for sedans and SUVs. The division supplies vehicle bodies to EVD through internal transfers and sells customised vehicle bodies to external customers, including specialist vehicle manufacturers and conversion companies. Components such as automotive-grade aluminium sheets, steel panels and carbon fibre composites are cut, shaped, welded, bonded and assembled into the custom vehicle body structure. Robotic equipment assists with precision welding, while skilled artisans complete custom modifications. The body undergoes sanding, corrosion treatment, priming and painting. Premium finishes may require multiple coats and specialised detailing. [TURN OVER]