MAC1501 EXAM SEM 2 OF 2025 EXPECTED SOLUTIONS

,QUESTION 1 (39
marks)
PART A (18 marks)

(A1) Calculate the variable
cost per unit using the high-
low method.

Overhead Costs
Month Production Volume (Units)
(R)
High (Dec) 6,750 76,105
Low (Mar) 4,960 68,050
Difference 1,790 8,055
Calculation:

Variable Cost per Unit = (Cost at High - Cost at Low) / (Volume at High -
Volume at Low)

= R8,,790 units
= R4.50 per unit

Answer: R4.50 per unit


(A2) Calculate the total fixed overheads for December 2025.

, Total Cost (Dec) = Fixed Cost + (Variable Cost per Unit × Number of Units)


R76,105 = Fixed Cost + (R4.50 × 6,750)

R76,105 = Fixed Cost + R30,375

Fixed Cost = R76,105 - R30,375

Fixed Cost = R45,730
Answer: R45,730


(A3) Calculate the total overhead amount budgeted for April 2026.



Using the straight-line equation: y = a + bx

y = R45,730 + (R4.50 × 5,300 units)

y = R45,730 + R23,850
y = R69,580
Answer: R69,580

(A4) Calculate the total overhead to recover per production department in
January 2026.

From From
Department Primary Allocation Total Overheads
Maintenance Administration