MAC1501 Assignment 1 Semester 1 2026 – Due 9 April 2026

Description

MAC1501 Assignment 1 Semester 1 2026

PART B

(10 marks, 12 minutes)
Bonakude (Pty) Ltd manufactures and sells television sets in South Africa and neighbouring countries.
The estimated total costs for the company when operating at a production and sales level of 500 units
are as follows:

R
Prime costs …………………………………………………………………………… 1 070 000
Conversion costs …………………………………………………………………….. 950 000
Total manufacturing costs …………………………………………………………… 1 590 000
Selling and administrative costs (70% fixed) ……………………………………… 480 000

Additional information:
Manufacturing overheads behaviour:
• 60% variable
• 40% fixed

REQUIRED: QUESTION 1, PART B
Calculate the following estimated costs:
(B1) Direct materials
(2)
(B2) Direct labour
(2)
(B3) Total variable costs per unit
(6)
Total marks for question 1 Part B
10

QUESTION 2

(15 marks, 18 minutes)
This question consists of two parts: Part A and Part B. Answer each part separately.
PART A

(6 marks, 7 minutes)
Leta Limited produces and sells television mounting brackets. The flexible budget of Leta Limited
indicates that the cost per unit of mounting brackets is R190 when 3 000 units are produced and R170
when 8 000 units are produced. These activities represent the highest and lowest. ………………
REQUIRED: QUESTION 2, PART A
(A1) Calculate the variable cost per unit
Use the high-low method
(3)