MAC2601/104/2/2020

Tutorial letter 104/2/2020

Principles of
Management Accounting

MAC2601
Semester 2

Department of Management Accounting

IMPORTANT INFORMATION:

Please activate your myUnisa account and your myLife e-mail

address. Please also ensure that you have regular access to the
myUnisa module site (MAC2601-2020-S2 if you are registered for
the first semester, or MAC2601-2020-S1 if you are writing a
supplementary examination this semester), as well as your group
(e-tutor) site.

Define tomorrow
Open Rubric
 MAC2601/104

CONTENTS
1. Introduction ………………………………………….......................................................... 2
2. Plagiarism.…………………............................................................................................. 4

3. Assignment 01 - 02/2020 Due Date………………...........................................................5

4. Assignment 01/2020 (Second Semester) …………………..............................................6

5. Frequently asked questions….…………….…….............................................................12

6. References …………………………......…………………………..................................... 13

NB: This tutorial letter must be read in conjunction with tutorial letter 101/2020,
tutorial letter 102/2/2020 and the study guides (or learning units), as well as the
Welcome Message and Announcements on myUnisa.

1. INTRODUCTION

Dear Student

This tutorial letter (104) contains assignment 1 for semester 2 of 2020. You will find important
general information about assignments 1 and 2 in your Tutorial Letters 101, 102 and online. It is
very important that you refer to Tutorial Letters 101 and 102 for more information about
Assignments 1 and 2 before you attempt this assignment.

It is also very important that you read section 2 of this tutorial letter before you start working on
your assignments. This section is about plagiarism and the plagiarism declaration that you make
by submitting any MAC2601 assignment. The assignments should be your own work, and no-
one should assist you with your assignments at all. We do not allow any group work in
terms of assignments.

Several students contravened this declaration in the previous semester and were awarded
0% for their assignments. This means that these students would have had very low semester
marks – see in the applicable paragraph below how the weighting works. Do not let anyone fool
you into buying an assignment or letting you pay for "classes" in which they do the assignment
with you. This is not allowed. Neither is it allowed that the answers to any of the questions are
shared on WhatsApp groups or in any other way, whether with or without remuneration. The
assignments need to reflect your knowledge and understanding of the principles of management
accounting: not of anyone else.

The assignments are also intended to help students with their studies, so if a student does not do
the assignments on his/her own, he/she is not only acting in a dishonest way, but also forfeiting
very important preparation for the examination.
Many of you are studying towards a professional accounting qualification (want to become a
CA (SA), CGMA, etc.). SAICA, CIMA and other professional bodies in the accounting industry
require conduct of the highest ethical standard. For example, both the SAICA Code of
Professional Conduct and the CIMA Code of Ethics have integrity as one of its fundamental

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principles (SAICA 2017; CIMA 2015). Honesty is a key part of integrity. Copying in a MAC2601
assignment is dishonest and unethical and we cannot allow students to get away with it.

On a more positive note, we are proud to say that there are students who work very hard on
their assignments. Also, each semester there are students who maybe did not do that well in
the assignments, but who used the opportunity to learn from their mistakes and perform well
in the examination. We provide detailed solutions to assignments, with additional teaching
notes that you can learn from, independent of your assignment marks. However, we would like
to advise you to rather start early and do as well as possible in the assignments, as they
determine your semester mark that carries a weight of 20% in the calculation of your final mark
for the module. Assignment 1 weighs 25% in the calculation of your semester mark and
assignment 2 weighs 75%.

Your examination mark, in turn, weighs 80% in the calculation of your final mark. It is possible
to do well in this module and remember not to give up if you perhaps find the module difficult
at first: there were even students who obtained 100% in the previous examination of this
module.

To conclude, we would like to encourage you to work hard throughout the semester and to ask
the lecturers if you need help with understanding any of the principles that are discussed in the
course. Also, familiarize yourself with all the announcements that are posted on myUnisa, as
they form an integral part of the course. We also include other information in this tutorial letter
that may be helpful in understanding the principles and/or completing your assignments.

Kind regards,

Name Telephone Office Building E-mail

number number
S Mthembu (Mr) 012 429 4574 1-46 Simon Radipere
M Ramaleba (Mr) 012 429 4334 1-37 Simon Radipere MAC2601-20-S1@unisa.ac.za
S Ntuli (Ms) 012 429 3895 1-08 Simon Radipere
M Dzimba (Mr) 012 429 8526 1-48 Simon Radipere
Any changes in lecturers' details will be communicated via myUnisa.

MAC2601 Lecturers

Alternatively, contact the Departmental Secretary, Ms Mmashadi Mokiri, at (012) 429-4753

or mokirmcd@unisa.ac.za to put you in contact with the lecturers.

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2. PLAGIARISM

As mentioned in the previous section, we do not allow any group work in this module. Students
may not work together on their assignments at all and no-one may assist you with any of your
MAC2601 assignments. If the lecturers find that your assignment is similar to the assignment
of another student, you will get 0% for your assignment. It is unacceptable that anyone,
including an external institution, helps you with the assignment.

By submitting any MAC2601 assignment, you automatically declare (see Plagiarism Declaration
below) that you have done and submitted your own work and that you are aware of the potential
consequences of plagiarism.

Plagiarism is the act of taking the words, ideas and thoughts of others and passing them off as your
own. It is a form of theft and involves a number of dishonest academic activities. All students receive
access to the Disciplinary code for students (latest version) at registration. Please study the code.
You must read Unisa's Policy on copyright infringement and plagiarism.

Plagiarism declaration for all MAC2601 assignments

PLAGIARISM DECLARATION

I declare that this assignment is my own work.

By submitting any MAC2601 assignment, I also declare that:

I have read the Unisa Students' Disciplinary Code.

I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be taken
against me if it appears that I plagiarised.
I have not allowed any other student to copy my work and have not copied from the work of
anyone else (including, but not limited to, other students and institutions).
I have not received any assistance with the assignment. I have not worked on the
assignment in a group.
For written assignments, I have referenced all the sources that I have used.
I know that if I am deemed to be in violation of this declaration, I will receive 0% for the
assignment(s) involved.

Please note: You do not have to submit the declaration. By submitting a MAC2601
assignment, you automatically declare that you adhere to all the above with regard to
the assignment.

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3. ASSIGNMENT 01/2020 DUE DATE

Assignment Unique number Due dates

Assignment 01 857419 25 August 2020

4. ASSIGNMENT 01/2020 (SECOND SEMESTER): MULTIPLE CHOICE

Instructions and further information:

• For this assignment, you have to study Topics 1 to 7 of the study guide.
The submission of the compulsory assignment 01/2020 will prove that you are an active
student and will therefore earn you admission to the examination.

• Marks awarded for Assignment 01/2020 weighs 25% in the calculation of your semester mark.

• The due date for this assignment is 25 August 2020 and no extension of time will be given
for the submission of the assignment.
This assignment must either be completed on the mark-reading sheet supplied and submitted
via one of the methods that Unisa allows for submission of hard copy Assignments or submitted
electronically via myUnisa. We do, however, recommend the electronic submission via
myUnisa. Please refer to the Study@Unisa brochure on how to use and complete a mark-
reading sheet or visit http://www.unisa.ac.za/sites/myunisa/default/ Assignments-&-
Examination/Assignments/Assignment-submission-with-myUnisa on how to submit
assignments via myUnisa. The following link also provides some more information about Unisa
assignments:http://www.unisa.ac.za/sites/myunisa/default/Assignments-&-
Examination/Assignments/General-information-about-assignment-submission.
Please remember to enter the unique number of the assignment on the mark-reading sheet if
you submit the hard copy.

• The unique number for this Assignments is 857419.

• Each correct multiple-choice answer carries one mark in assignment 01, but two marks in the
exam.

• Round to two decimal places where necessary, unless a question has specific rounding
requirements.

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ASSIGNMENT 01/ 2020 (SECOND SEMESTER) – MULTIPLE CHOICE

1. When volume or level of activity decreases, what would be the effect on variable costs?
1) variable costs will decrease per unit.
2) variable costs will increase per unit.
3) variable costs will increase in total.
4) variable costs will decrease in total.

2. Manufacturing overheads are examples of:

1) Expired costs.
2) Variable costs.
3) Fixed costs.
4) Mixed costs.

3. Which of the following would most likely be included as part of manufacturing overhead in the
production of a wooden table?
1) the amount paid to individual to who stains the table.
2) the commission paid to salesperson who sold the table.
3) the cost of glue used in the table.
4) the cost of the wood used in the table.

4. Which of the following would be classified as direct labour?

1) Human Resources Manager in a company servicing car.
2) Bricklayer in a construction company.
3) General Manager in a Do-it-Yourself (DIY) shop.
4) Maintenance Manager in a company producing cameras.

5. Mandlandona (Pty) Ltd’s manufacturing overhead is 40% of its total conversion costs. If direct
labour is R39 000 and direct materials are R27 000, the manufacturing overhead is …
1) R26 000.
2) R65 000.
3) R26 400.
4) R15 600.

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6. In which system is accounting records continuously updated every time that the company
receives or sells inventory?
1) perpetual system.
2) weighted average system.
3) periodic system.
4) Absorption costing system.

Use the following information to answer questions 7 and 8.

Mkhulu Goduka is a general worker at Nongoma Factory. From Monday to Friday Mkhulu works
normal working hours of 45 hours per week. Normal overtime extends to Saturday and is remunerated
at 1,5 times the normal rate, whereas the overtime on Sunday is remunerated two times the normal
rate. During the week ending 05 January 2020 Mkhulu worked 2 hours normal overtime and 4 hours
overtime on Sunday. Mkhulu earned a total gross wage of R6 468 for the week under review.
7. Mkhulu’s basic wage rate is … per hour
1) R143,73.
2) R128,82.
3) R115,50.
4) R182,82.

8. The overtime premium paid to Mkhulu is…

1) R172,50.
2) R577,50.
3) R231,00.
4) R127,50

Use the following information to answer questions 9 and 10.

Madlukovu Limited is a retailer that has adopted a perpetual inventory system and a weighted average
cost flow assumption. At the beginning of January 2020 there were 1 000 units of merchandise in
inventory. The total value of opening inventory was R45 000.
During January 2020 the following purchases were made:
Date and units
8 January: 200 units at R46 each
15 January:150 units at R48 each
22 January: 120 units at R50 each
29 January:100 units at R51 each

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During January 2020 the following sales took place:

Date Sales
5 January…………………………………… 300 units
10 January…………………………………. 400 units
16 January…………………………………. 250 units
28 January ………………………………… 170 units
30 January…………………………………. 30 units

9. The cost of sales for January was R… (Round off to the nearest two decimals where applicable)
1) R20 055.
2) R72 500.
3) R52 445.
4) R22 500.

10. Assume that Madlukovu Limited applies a consistent mark-up of 40% on cost. The gross profit
for January was R…
1) R31 500.
2) R8 022.
3) R29 000.
4) R20 978.

Use the following information to answer questions 11 and 12.

Daluxolo (Pty) Ltd is a small enterprise based in North West Province. The company decontaminates
local public spaces to prevent the spread of the novel coronavirus.

The following information relates to the overhead of a contract worker at three activity levels:

Overheads R73 950 R80 500 R83 585

Square metres cleaned 12 750 m² 11 000 m² 15 100 m²

11. The total fixed overhead amounts to:

1) R21 675.
2) R83 585.
3) R52 275.
4) R70 577.

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12. What is the estimated of the total overhead cost if 16 200 square metres are to be cleaned?
1) R88 095.
2) R89 674.
3) R93 960.
4) R80 500.

13. Fixed costs are charged in full against profit in which they are incurred when ……….. costing is
used.
1) relevant.
2) variable.
3) process.
4) absorption.

14. In a period, opening inventories were 12 600 units and closing inventories 14 100 units. The
profit based on variable costing method was R50 400 and profit using absorption costing method
was R60 150. The fixed overhead absorption rate per unit is:
1) R4,00.
2) R4,27.
3) R6,50.
4) R4,77.

Use the following information to answer questions 15 to 20.

Ndabazalila (Pty) Ltd manufactures mobile computer stands. The company uses the absorption
costing for internal and external reporting purposes. The following information is relevant for the
financial year ended 30 June 2020:
R
Sales (2 500 units) 2 000 000
Less: cost of sales 1 050 000
Opening inventory 0
Manufacturing overhead costs
Direct material (variable/ R100 per unit) 250 000
Direct labour (variable/R70 per unit) 175 000
Manufacturing overhead (semi-variable) 625 000
Less: closing inventory 0
Gross profit 950 000
Less: selling and administration expenses 800 000
(25% variable, 75% fixed)
Net profit 150 000
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The following information is relevant:

1. The actual fixed manufacturing overheads were R50 000 less than budgeted. Actual fixed selling
and administrative were as budgeted.
2. Actual sales were 2 000 units and actual production was 2 600 units.
3. The manufacturing overhead were as budgeted on the following cost-volume relationship:
Units produced…………………………….... 2 000 3 000
Cost………………………………………….. R600 000 R650 000
4. Finished goods are valued at the budgeted product cost per unit. There was no opening inventory
of finished goods.
5. It is estimated that during the year 30 June 2021 the selling price will increase by 10% and the
direct material cost per unit will increase by 5%. All other costs will remain unchanged.

15. Contribution per unit for the year ending 30 June 2020 is equal to:
1) R300.
2) R500.
3) R370.
4) R350.

16. The total fixed costs for year ended 30 June 2020 amount to:
1) R1 450 000.
2) R1 100 000.
3) R1 225 000.
4) R1 125 000.

17. The number of units that must be sold during the year 2020 to ensure that fixed costs are
covered and no loss is suffered are:
1) 2 500 units.
2) 3 667 units.
3) 2 200 units.
4) 2 600 units.

18. The margin of safety ratio for the year 2020 is equal to:
1) 25%
2) 15%
3) 20%
4) 12%
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19. The contribution per unit for the year ending 30 June 2021 would be:
1) R575.
2) R407.
3) R300.
4) R385.

20. The breakeven point in units for the year ending 30 June 2021 would be:
1) 2 000 units.
2) 3 000 units
3) 2 500 units.
4) 1 913 units.

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5. FREQUENTLY ASKED QUESTIONS

The following are examples of questions that the lecturers frequently get with regard to assignments:

Q: I submit my assignment through the post?

A: Yes, we do allow it, although submitting your assignment online may provide an easier trail to
follow should there be any doubt about whether the University received it or not. However, if you
submit by post, please ensure that you keep a copy of your assignment in case we never received it
and require a re-submission.

Q: Why have I not received my assignment 01 marks yet?

A: Assignment 01 is a multiple-choice (MCQ) assignment. It is marked automatically by the computer

system. However, assignment 02 takes longer to process and mark as it is a written assignment that
is marked by a (human) internal or external marker. Marks are captured as individual assignments
are marked and therefore not released all at once for all the students registered for the module as
with MCQ assignment. It can take more than a month after the due date for your marks for assignment
01 to become available. If you, however, suspect that your assignment was not received by the
University, etc., please contact Student Assessment Administration urgently and before the exam
date.

It is very important that you do not wait for your assignment 1 results or marked assignment
before you work through your own attempt to answer the questions together with the tutorial
letter 201 Do self-evaluation and ensure that you understand exactly how all the amounts in Tutorial
Letter 202 are arrived at and why the discussion questions were answered as they were in the
suggested solution.

Q: What do I do if I do not agree with my assignment 01 mark?

A: Please e-mail a copy of your marked and returned assignment to MAC2601-19-S1@unisa.ac.za

before the exam date, clearly indicating with what and why you do not agree. The lecturers will
investigate whether your marks need to be adjusted or not. No assignment marks will be adjusted
after the exam date, so make sure that you follow up with us in time.

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6. REFERENCES

CIMA (Chartered Institute of Management Accountants). CIMA code of ethics for professional
accountants [Online]. Available from: https://www.cimaglobal.com/Documents/Ethics/
CIMA%20Code%20of%20Ethics%202017.pdf [Accessed: 11/05/2018].

COETZEE, W.J., JORDAAN, A.H., SITHOLE, S.K.M., VERSTER, J.M. 2012a. Principles of
management accounting: study guide 1 of 2 for MAC2601. Pretoria: University of South Africa.

COETZEE, W.J., NTULI, S.B., VERSTER, J.M. 2012b. Principles of management accounting: study
guide 2 of 2 for MAC2601. Pretoria: University of South Africa.

SAICA (South African Institute of Chartered Accountants). Code of professional conduct of the South
African Institute of Chartered Accountants: 2017/2018 Edition [Online]. Available from:
https://www.saica.co.za/Portals/0/Technical/accounting/documents/Code%20of%20Professional%2
0Conduct.pdf/ [Accessed: 11/05/2018].

© UNISA 2020

All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means without prior written
permission of Unisa.

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