Description
MAC2601
SEPTEMBER 2026
QUESTION 1 (24 MARKS)
T & T Mofokeng (Pty) Ltd (“T & T Mofokeng”) makes and sells soccer boots. The company
was established by twin brothers Thabo and Thabang Mofokeng, and it is based in Setsing
Qwaqwa in the Free State Province. The founders of the company grew up playing soccer and
noticed that other soccer players played on gravel without suitable soccer boots. They used
their savings to fund their business. T & T Mofokeng has a 31 December financial year-end.
1. The previous management accountant prepared the following budgeted figures for the 2025
financial year at the beginning of 2025:
Budgeted sales units
20 000
Budgeted production units
20 000
R
Direct materials cost per unit
80
Direct labour cost per unit
60
Manufacturing overheads per unit (mixed cost)
?
Variable selling costs (per unit sold)
30
Fixed selling costs for the year
360 000
2. Variable manufacturing overhead per unit did not increase from 2023 to 2024 and was also
not expected to increase in 2025 when the 2025 budgeted was prepared. Fixed
manufacturing overheads in total did not increase from 2023 to 2024 and were also not
expected to increase in 2025 when the 2025 budgeted was prepared. The manufacturing
overheads for the 2025 financial year were budgeted based on the following actual
information from the 2024 and 2023 financial years:
2024
2023
Total manufacturing overheads
R800 000
R1 000 000
Manufacturing activity (in units)
15 000
25 000
3. The actual fixed manufacturing overheads incurred during 2025 and the actual units
produced for the 2025 financial year were as follows:
Actual fixed manufacturing overheads
R700 000
Actual units produced
20 000
4. The following comparison of the 2025 budgeted and 2025 actual figures is available:
• The actual variable selling cost per unit sold and the actual total fixed selling expenses
were as budgeted.
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