, MAC1501 – ASSESSMENT 1
SEMESTER 1, 2026
QUESTION 1 (15 marks)
PART A – Multiple Choice (5 marks)
Question Answer Reason
A1 (b) Total variable costs vary in direct proportion to changes in
production.
A2 (d) Cost assignment uses direct tracing, allocation, and
apportionment — all of the above.
A3 (b) Absorption costing is the basis for measuring the cost of goods
manufactured.
A4 (c) Management accountants are not legally required to register with
CIMA.
A5 (b) Popularity is not a key ethical principle; integrity, confidentiality,
and competence are.
PART B – Bonakude (Pty) Ltd (10 marks)
GIVEN INFORMATION:
Item R
Prime costs 1 070 000
Conversion costs 950 000
Total manufacturing costs 1 590 000
Selling and administrative costs (70% fixed) 480 000
B1: Direct Materials (2 marks)
Relationships used:
Total manufacturing costs = Prime costs + Manufacturing overheads
Manufacturing overheads = Total manufacturing costs − Prime costs
= R1 590 000 − R1 070 000
= R520 000
Prime costs = Direct materials + Direct labour ...(1)
Conversion costs = Direct labour + Manufacturing overheads ...(2)
From (2): Direct labour = Conversion costs − Manufacturing overheads
= R950 000 − R520 000
= R430 000
SEMESTER 1, 2026
QUESTION 1 (15 marks)
PART A – Multiple Choice (5 marks)
Question Answer Reason
A1 (b) Total variable costs vary in direct proportion to changes in
production.
A2 (d) Cost assignment uses direct tracing, allocation, and
apportionment — all of the above.
A3 (b) Absorption costing is the basis for measuring the cost of goods
manufactured.
A4 (c) Management accountants are not legally required to register with
CIMA.
A5 (b) Popularity is not a key ethical principle; integrity, confidentiality,
and competence are.
PART B – Bonakude (Pty) Ltd (10 marks)
GIVEN INFORMATION:
Item R
Prime costs 1 070 000
Conversion costs 950 000
Total manufacturing costs 1 590 000
Selling and administrative costs (70% fixed) 480 000
B1: Direct Materials (2 marks)
Relationships used:
Total manufacturing costs = Prime costs + Manufacturing overheads
Manufacturing overheads = Total manufacturing costs − Prime costs
= R1 590 000 − R1 070 000
= R520 000
Prime costs = Direct materials + Direct labour ...(1)
Conversion costs = Direct labour + Manufacturing overheads ...(2)
From (2): Direct labour = Conversion costs − Manufacturing overheads
= R950 000 − R520 000
= R430 000
