SYmon MK
Our aim is your success.
MAC2601
COST ACCOUNTING AND NCONTROL
Question 1:
Disclaimer
Although this document has been meticulously crafted, it is provided without any express, implied, or representational
warranties.
The author assumes no liability or responsibility for any actions that are taken as a result of the information contained in thi
document.
The purpose of this document is to serve as a reference, research, and comparison tool.
It is strictly prohibited to reproduce, rescale, or transmit any portion of this document.
,This paper consists of 6 pages.
N.B.:
1. This paper consists of FIVE (5) questions.
2. All questions must be answered.
3. Basic workings, where applicable, must be shown.
4. Ensure that you are handed the correct examination answer book (blue for accounting) by the
invigilator.
5. EACH QUESTION ATTEMPTED MUST BE COMMENCED ON A NEW (SEPARATE) PAGE.
6. The required percentage to pass this module is 50%.
PROPOSED TIMETABLE:
Question Subject Marks Time in
minutes
1 Overheads 20 24
2 Standard costing 20 24
3 Process costing systems 20 24
4 Direct and absorption costing 20 24
5 Cost volume profit-analysis 20 24
100 120
[TURN OVER]
, 2 ACN203S
May/June 2012
QUESTION 1 (20 marks, 24 minutes)
Swift Sailing Ship Manufacturers (Pty) Ltd manufactures ships. The company has two
manufacturing cost centres, Indian and Atlantic, and two service cost centres, Pacific and Arctic.
The company uses the following bases to allocate overheads among the various cost centres:
Indian Atlantic Pacific Arctic
Floor area – (‘000 m²) 800 650 100 50
Number of employees 75 65 10 10
Budgeted direct labour hours 9 000 6 500 - -
Actual direct labour hours 8 500 6 400 - -
Indirect material – direct 180 000 60 000 - -
Number of inspections 70 70 10 10
The budgeted overhead expenditure for the month ended 31 August 2012 is as follows:
R
Factory building insurance 400 000
Quality control 50 000
Canteen (factory) 100 000
Indirect labour: Indian 90 000
Indirect labour: Atlantic 60 000
Indirect material 240 000
Additional information:
Service cost centres’ costs are allocated to manufacturing- and service cost centres on
the following sequence and bases:
First Arctic – 2; 2; 1
Second Pacific – Floor area (‘000 m²)
Overhead allocation rates are based on direct labour hours.
REQUIRED:
For the month ended 31 August 2012, calculate the following (Round all your answers to the
nearest Rand):
a) Primary and secondary allocations of overheads (13)
b) Overhead allocation rate for Indian. (1½)
c) Overhead allocation rate for Atlantic. (1½)
d) Calculate the applied overheads for Indian. (2)
e) Calculate the applied overheads for Atlantic. (2)
[TURN OVER]
Our aim is your success.
MAC2601
COST ACCOUNTING AND NCONTROL
Question 1:
Disclaimer
Although this document has been meticulously crafted, it is provided without any express, implied, or representational
warranties.
The author assumes no liability or responsibility for any actions that are taken as a result of the information contained in thi
document.
The purpose of this document is to serve as a reference, research, and comparison tool.
It is strictly prohibited to reproduce, rescale, or transmit any portion of this document.
,This paper consists of 6 pages.
N.B.:
1. This paper consists of FIVE (5) questions.
2. All questions must be answered.
3. Basic workings, where applicable, must be shown.
4. Ensure that you are handed the correct examination answer book (blue for accounting) by the
invigilator.
5. EACH QUESTION ATTEMPTED MUST BE COMMENCED ON A NEW (SEPARATE) PAGE.
6. The required percentage to pass this module is 50%.
PROPOSED TIMETABLE:
Question Subject Marks Time in
minutes
1 Overheads 20 24
2 Standard costing 20 24
3 Process costing systems 20 24
4 Direct and absorption costing 20 24
5 Cost volume profit-analysis 20 24
100 120
[TURN OVER]
, 2 ACN203S
May/June 2012
QUESTION 1 (20 marks, 24 minutes)
Swift Sailing Ship Manufacturers (Pty) Ltd manufactures ships. The company has two
manufacturing cost centres, Indian and Atlantic, and two service cost centres, Pacific and Arctic.
The company uses the following bases to allocate overheads among the various cost centres:
Indian Atlantic Pacific Arctic
Floor area – (‘000 m²) 800 650 100 50
Number of employees 75 65 10 10
Budgeted direct labour hours 9 000 6 500 - -
Actual direct labour hours 8 500 6 400 - -
Indirect material – direct 180 000 60 000 - -
Number of inspections 70 70 10 10
The budgeted overhead expenditure for the month ended 31 August 2012 is as follows:
R
Factory building insurance 400 000
Quality control 50 000
Canteen (factory) 100 000
Indirect labour: Indian 90 000
Indirect labour: Atlantic 60 000
Indirect material 240 000
Additional information:
Service cost centres’ costs are allocated to manufacturing- and service cost centres on
the following sequence and bases:
First Arctic – 2; 2; 1
Second Pacific – Floor area (‘000 m²)
Overhead allocation rates are based on direct labour hours.
REQUIRED:
For the month ended 31 August 2012, calculate the following (Round all your answers to the
nearest Rand):
a) Primary and secondary allocations of overheads (13)
b) Overhead allocation rate for Indian. (1½)
c) Overhead allocation rate for Atlantic. (1½)
d) Calculate the applied overheads for Indian. (2)
e) Calculate the applied overheads for Atlantic. (2)
[TURN OVER]
