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,UNIVERSITY EXAMINATIONS
May/June 2024
MAC3701
Application of Management Accounting Techniques
100 Marks
Duration 3 Hours
This paper consists of 8 pages (including this page and the Invigilator
App instructions).
Instructions:
1. All questions must be answered, and all calculations must be shown.
2. This is a closed-book examination; hence, you may not refer to any of
your study material, notes, the internet, etc. during the examination.
3. Ignore taxation and the time value of money.
4. Please ensure you have carefully read and follow the instructions
provided in:
• Tutorial letter 104
• The Invigilator App documents
• “Examination instructions” document provided with your timetable
on myUnisa
• May/June 2023 examination rules
5. You are reminded that you should make use of the Invigilator App,
about which you will find more information on the next page.
PROPOSED TIMETABLE
, Marks Minutes
Question 1: Topics
Direct and absorption costing; Overhead allocation;
Margin of safety; Standard costing; Ethical, social,
100 180
business and other related matters; Joint and by-
product costing; Relevant costing and Target
costing.
Converting your answers to a PDF file and
successfully uploading your one PDF file. (You
30
must successfully submit your PDF file before
11:30, South African time, 22 May 2024.)
100 210
QUESTION 1
(100 Marks; 180 Minutes)
ZAKokoa Ltd (“ZAK”) consists of two divisions, namely a cocoa bean
processing plant (“CBean”) and a cocoa-based hot drink producer (“HotD”).
The divisions are managed by independent management teams that are
responsible for all decisions affecting their respective divisions. Both
production plants are situated near Cape Town in the Western Cape. ZAK has
a 31 March financial year-end; uses an absorption costing system; and values
all its inventory items using the first-in-first-out (FIFO) method.
, ZAK’s annual profit targets for both the 2024 and the 2023 financial years are:
Targets Division
CBean HotD
Gross profit 40% 30%
margin
1 HOT DRINK PRODUCER (“HotD”)
HotD produces and sells two types of cocoa-based hot drinks namely, basic hot
chocolate (“Basic”) and luxury hot chocolate (“Lux”). Cocoa powder, full
cream milk powder, artificial filler powders, and sugar are combined to produce
Basic hot chocolate powder and cocoa powder, full cream milk powder, and
sugar are combined to produce Lux hot chocolate powder. One unit of Basic
contains 500 grams (g) of basic hot chocolate powder packaged in a non-
recyclable plastic container, while one unit of Lux contains 300 g of luxury hot
chocolate powder packaged in a recyclable pouch.
HotD’s annual maximum production capacity is 130 tonnes of Basic hot
chocolate powder and 42 tonnes of Lux hot chocolate powder.
1.1 BUDGETED AND ACTUAL MANAGEMENT INFORMATION
FOR THE 2023 FINANCIAL YEAR
The information in the following two tables was extracted from HotD’s
systems:
Details Basic Lux
Budgeted sales and ? ?
production units
Actual units sold 254 000 125 000
Actual units produced 255 840 134 000
Standard labour clock 12 15
minutes per unit
Actual labour clock minutes 10,8 15,6
per unit
Actual labour work minutes 10,4 15,3
per unit
,UNIVERSITY EXAMINATIONS
May/June 2024
MAC3701
Application of Management Accounting Techniques
100 Marks
Duration 3 Hours
This paper consists of 8 pages (including this page and the Invigilator
App instructions).
Instructions:
1. All questions must be answered, and all calculations must be shown.
2. This is a closed-book examination; hence, you may not refer to any of
your study material, notes, the internet, etc. during the examination.
3. Ignore taxation and the time value of money.
4. Please ensure you have carefully read and follow the instructions
provided in:
• Tutorial letter 104
• The Invigilator App documents
• “Examination instructions” document provided with your timetable
on myUnisa
• May/June 2023 examination rules
5. You are reminded that you should make use of the Invigilator App,
about which you will find more information on the next page.
PROPOSED TIMETABLE
, Marks Minutes
Question 1: Topics
Direct and absorption costing; Overhead allocation;
Margin of safety; Standard costing; Ethical, social,
100 180
business and other related matters; Joint and by-
product costing; Relevant costing and Target
costing.
Converting your answers to a PDF file and
successfully uploading your one PDF file. (You
30
must successfully submit your PDF file before
11:30, South African time, 22 May 2024.)
100 210
QUESTION 1
(100 Marks; 180 Minutes)
ZAKokoa Ltd (“ZAK”) consists of two divisions, namely a cocoa bean
processing plant (“CBean”) and a cocoa-based hot drink producer (“HotD”).
The divisions are managed by independent management teams that are
responsible for all decisions affecting their respective divisions. Both
production plants are situated near Cape Town in the Western Cape. ZAK has
a 31 March financial year-end; uses an absorption costing system; and values
all its inventory items using the first-in-first-out (FIFO) method.
, ZAK’s annual profit targets for both the 2024 and the 2023 financial years are:
Targets Division
CBean HotD
Gross profit 40% 30%
margin
1 HOT DRINK PRODUCER (“HotD”)
HotD produces and sells two types of cocoa-based hot drinks namely, basic hot
chocolate (“Basic”) and luxury hot chocolate (“Lux”). Cocoa powder, full
cream milk powder, artificial filler powders, and sugar are combined to produce
Basic hot chocolate powder and cocoa powder, full cream milk powder, and
sugar are combined to produce Lux hot chocolate powder. One unit of Basic
contains 500 grams (g) of basic hot chocolate powder packaged in a non-
recyclable plastic container, while one unit of Lux contains 300 g of luxury hot
chocolate powder packaged in a recyclable pouch.
HotD’s annual maximum production capacity is 130 tonnes of Basic hot
chocolate powder and 42 tonnes of Lux hot chocolate powder.
1.1 BUDGETED AND ACTUAL MANAGEMENT INFORMATION
FOR THE 2023 FINANCIAL YEAR
The information in the following two tables was extracted from HotD’s
systems:
Details Basic Lux
Budgeted sales and ? ?
production units
Actual units sold 254 000 125 000
Actual units produced 255 840 134 000
Standard labour clock 12 15
minutes per unit
Actual labour clock minutes 10,8 15,6
per unit
Actual labour work minutes 10,4 15,3
per unit
