MAC3701
Assignment 2 Semester 2 2025
Unique #
Due Date: 11 September 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, PART A
(A-a) Critical Evaluation of Income Statement
Item Given Correct Agree/Disagree Reason
Amount Amount
Sales
Gearboxes R45,000,000 R45,000,000 Agree 10,000 × R4,500 =
Couplings R38,400,000 R38,400,000 Agree 32,000 × R1,200 =
Direct
Material
Gearboxes R12,708,000 R12,708,000 Agree 12,000 units × R1,059 =
R12,708,000
Couplings R9,252,000 R9,252,000 Agree 36,000 units × R257 =
R9,252,000
Standard Cost Verification
Gearbox Standard Cost:
Material Quantity Rate Cost
Steel 24 kg R15/kg R360
Aluminium 8 kg R44/kg R352
Bearings 4 R50 each R200
Lubricant 2L R44/L R88
Sealing rings 12 rings R6/ring R72
TOTAL R1,072
Variance (Gearboxes): R1,072 – R1,059 = R13 unfavourable per unit
Varsity Cube 2025 +27 81 278 3372
Assignment 2 Semester 2 2025
Unique #
Due Date: 11 September 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, PART A
(A-a) Critical Evaluation of Income Statement
Item Given Correct Agree/Disagree Reason
Amount Amount
Sales
Gearboxes R45,000,000 R45,000,000 Agree 10,000 × R4,500 =
Couplings R38,400,000 R38,400,000 Agree 32,000 × R1,200 =
Direct
Material
Gearboxes R12,708,000 R12,708,000 Agree 12,000 units × R1,059 =
R12,708,000
Couplings R9,252,000 R9,252,000 Agree 36,000 units × R257 =
R9,252,000
Standard Cost Verification
Gearbox Standard Cost:
Material Quantity Rate Cost
Steel 24 kg R15/kg R360
Aluminium 8 kg R44/kg R352
Bearings 4 R50 each R200
Lubricant 2L R44/L R88
Sealing rings 12 rings R6/ring R72
TOTAL R1,072
Variance (Gearboxes): R1,072 – R1,059 = R13 unfavourable per unit
Varsity Cube 2025 +27 81 278 3372
