OSCAR THE TUTOR
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorialsOSCAR THE TUTOR
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials
, Cost
Agree/Disagree &
Evaluation Aspect Accountant's Correct Workings
Reason
Workings
Disagree. Prime costs
should be 70% of
selling price (R2,500 ×
70% = R1,750 for SPump: R1,750; BPump:
SPump: R1,500; SPump; R4,500 × 70% R3,150. Contribution per unit
Prime Costs Calculation
BPump: R2,700 = R3,150 for BPump). recalculated as R485 (SPump)
Prime costs are and R1,085 (BPump).
understated, leading
to overstated
contribution.
Disagree. Incorrect due
to understated prime SPump: R2,500 - R1,750 -
SPump: R735; costs. Correct R230 - R35 = R485; BPump:
Contribution per Unit
BPump: R1,535 contributions are R485 R4,500 - R3,150 - R230 - R35
(SPump) and R1,085 = R1,085.
(BPump).
Disagree. Budgeted
Correct sales mix: 60% SPump;
production is 60,000
40% BPump. Weighted
64% SPump; SPump and 40,000
Sales Mix average contribution: (R485 ×
36% BPump BPump (60% SPump;
60%) + (R1,085 × 40%) =
40% BPump). Sales mix
R725.
used is incorrect.
, Disagree. Fixed costs
exclude fixed
manufacturing
overheads (R15m) and
R12.5m (admin) incorrectly include Total fixed costs = R34m
Fixed Costs Inclusion + R10m (S&D) = total S&D costs. Fixed (R12.5m admin + R6.5m fixed
R22.5m S&D = R10m - (100k S&D + R15m fixed MOH).
units × R35) = R6.5m.
Total fixed costs =
R12.5m + R6.5m +
R15m = R34m.
Disagree. Formula
omits target profit
(R28.5m) and uses
(R12.5m + Total units = (R34m + R28.5m)
incorrect denominator.
R10m) / (R735 + / R725 ≈ 86,207 units. Split:
Target Profit Formula Correct formula: (Fixed
R1,535) = 9,911 60% SPump = 51,724 units;
costs + Target profit) /
units 40% BPump = 34,483 units.
Weighted contribution
= (R34m + R28.5m) /
R725 ≈ 86,207 units.
Disagree. Multiple
errors lead to Revised Target Units:
significant SPump: 51,724 units
Target units =
underestimation of BPump: 34,483 units
9,911 (SPump:
Conclusion required units. Correct Total: 86,207 units
6,343; BPump:
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorialsOSCAR THE TUTOR
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials
, Cost
Agree/Disagree &
Evaluation Aspect Accountant's Correct Workings
Reason
Workings
Disagree. Prime costs
should be 70% of
selling price (R2,500 ×
70% = R1,750 for SPump: R1,750; BPump:
SPump: R1,500; SPump; R4,500 × 70% R3,150. Contribution per unit
Prime Costs Calculation
BPump: R2,700 = R3,150 for BPump). recalculated as R485 (SPump)
Prime costs are and R1,085 (BPump).
understated, leading
to overstated
contribution.
Disagree. Incorrect due
to understated prime SPump: R2,500 - R1,750 -
SPump: R735; costs. Correct R230 - R35 = R485; BPump:
Contribution per Unit
BPump: R1,535 contributions are R485 R4,500 - R3,150 - R230 - R35
(SPump) and R1,085 = R1,085.
(BPump).
Disagree. Budgeted
Correct sales mix: 60% SPump;
production is 60,000
40% BPump. Weighted
64% SPump; SPump and 40,000
Sales Mix average contribution: (R485 ×
36% BPump BPump (60% SPump;
60%) + (R1,085 × 40%) =
40% BPump). Sales mix
R725.
used is incorrect.
, Disagree. Fixed costs
exclude fixed
manufacturing
overheads (R15m) and
R12.5m (admin) incorrectly include Total fixed costs = R34m
Fixed Costs Inclusion + R10m (S&D) = total S&D costs. Fixed (R12.5m admin + R6.5m fixed
R22.5m S&D = R10m - (100k S&D + R15m fixed MOH).
units × R35) = R6.5m.
Total fixed costs =
R12.5m + R6.5m +
R15m = R34m.
Disagree. Formula
omits target profit
(R28.5m) and uses
(R12.5m + Total units = (R34m + R28.5m)
incorrect denominator.
R10m) / (R735 + / R725 ≈ 86,207 units. Split:
Target Profit Formula Correct formula: (Fixed
R1,535) = 9,911 60% SPump = 51,724 units;
costs + Target profit) /
units 40% BPump = 34,483 units.
Weighted contribution
= (R34m + R28.5m) /
R725 ≈ 86,207 units.
Disagree. Multiple
errors lead to Revised Target Units:
significant SPump: 51,724 units
Target units =
underestimation of BPump: 34,483 units
9,911 (SPump:
Conclusion required units. Correct Total: 86,207 units
6,343; BPump:
