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Exam (elaborations)

Mac3761 exam 2024 solutions

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Mac3761 exam 2024 solutions

Institution
University Of South Africa (Unisa)
Course
Management Accounting III








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Institution
University of South Africa (Unisa)
Course
Management Accounting III
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October 11, 2024
Number of pages
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Written in
2024/2025
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Mac3761 exam

, QUESTION 1




_(a) Budgeted internal transfer price per dish-set_



Direct materials:

- Round steel (4.5 kg × R40/kg) = R180

- LNB = R144

- Mounting bracket = R62

Total direct materials = R386



Direct labour:

- 150 minutes × (R30/hour ÷ 60) = R75



Total direct costs = R386 + R75 = R461



Adding FMO (R6,600,000 ÷ 1,100,000 units):

R461 + (R6,600,000 ÷ 1,100,000) = R461 + R6 = R467



Budgeted internal transfer price per dish-set = R467



_(b) Correctness of Financial Manager's statement_



Minimum transfer price = External selling price - Incremental costs

= R510 - (R461 - Contribution to FMO)

= R510 - (R461 - R6)

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