 |
BAC621C- BUSINESS ACCOUNTING 2B CATS- 2ND OPP- JUNE 2023 |
|
|
1 Page 1 |
▲back to top |
nAmlBIA
UnlVERSITY
0 F SCIEnCEAno
TECHnOLOGY
HP-65B
HAROLDPUPKEWITZ
GraduateSchoolof Business
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
HAROLDPUPKEWITZGRADUATESCHOOLOF BUSINESS(HP-GSB)
HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS
QUALIFICATION: DIPLOMA IN BUSINESS PROCESS MANAGEMENT
QUALIFICATION CODE: 06DBPM LEVEL: 6
COURSE CODE: BAC621 C
COURSE NAME: INTRODUCTION TO
BUSINESS MANAGEMENT
SESSION: JULY 2023
DURATION: 3 HOURS
PAPER: PAPER 2
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER
Sheehama, K.G.H.
MODERATOR Odada, L
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly, showing all your workings
3. Number the answers clearly.
4. Round off your final answers to 2 decimal places
PERMISSIBLE MATERIALS
1. Examination paper
2. Examination script
3. Non-programmable calculator
THIS QUESTION PAPER CONSISTS OF 7 PAGES (including this front page)
|
|
2 Page 2 |
▲back to top |
What amount should be budgeted for direct labour in February?
(2)
A.
N$160 000
B.
N$140 000
C.
N$146 000
D.
136 500
1.3 Explain any three (3) of functions of budgets.
(6)
QUESTION 2
(20 MARKS)
NamRadios Ltd (pty) is a manufacturer of radios based in Windhoek. The managing director has become aware
of the disadvantages of fixed budgets and asks you to prepare a flexible budget for the next accounting period.
The following for 2023 is available:
Cost item
Direct labour
Direct materials
Indirect labour
Indirect materials
Maintenance
Energy
Depreciation
Total costs
8 000 units
N$
40000
32 000
76 000
24 000
45 000
30000
10000
257 000
10 000 radios
N$
so000
40000
80 000
30 000
55 000
35 000
10000
300 000
11 000 radios
N$
55 000
44000
82 000
33 000
60000
37 500
10000
321500
The actual activity level of 9 000 units are manufactured and the following analysis is available:
Cost item
Direct labour
Direct materials
Indirect labour
Indirect materials
Maintenance
Energy
Depreciation
Total costs
9 000 radios
N$
48000
35 000
76 000
28 000
52 000
37 500
10000
286 500
REQUIRED
Compile performance report for activity level of 9 000 units, clearly indicate flexible budget and variances.
3
|
|
3 Page 3 |
▲back to top |
REQUIRED:
Prepare the following budgets in (N$) for the year ended 30 April 2023:
3.1 Sales budget
(3)
3.2 Production budget
(4)
3.3 Direct materials purchased budget
(6)
3.4 Direct labour budget
(3)
3.5 Manufacturing overheads budget
(3)
3.6 Total fixed costs budget
(1)
QUESTION 4
(20 Marks)
Angie Silva has recently opened The Sandal Shop in Rundu, a store that specializes in fashionable sandals. Angie
has just received a degree at the NUSTand she is anxious to apply the principles she has learned. In time, she
hopes to open a chain of sandal shops. As a first step, she has prepared the following analysis for her new store:
Sales price per pair of sandals
N$400
Variable
expenses per pair of sandals
_.1§Q
Contribution margin per pair of sandals
N$240
Pair of sandals sold
320
Fixed expenses per year:
Building rental
N$15 000
Equipment depreciation
7 000
Selling expenses
20000
Administrative expenses
18 000
Total fixed expenses
N$60 000
REQUIRED:
4.1 Calculate how many pairs of sandals must be sold each year to break even in units and N$.
(6)
4.2 Angie has decided that she must earn at least N$31 200 as profit in the first year to justify her time and
effort. Calculate how many pairs of sandals must be sold to reach this target profit.
(3)
4.3 Angie now has two salespersons working in the store - one full time and one part time. It will cost her an
additional fixed expense N$40 000 per year to convert the part-time position to a full-time position. Angie
believes that the change will bring in additional 300 pair of sandals annually. Would you recommend her
to change the position? Justify.
(11)
5
|
|
4 Page 4 |
▲back to top |
APPENDIXTABLE1
Present Value Tables
Number
Interest Rate per Year
of Years 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%
1 .990 .980 .971 .962 .952 .943 .935 .926 .917 .909 .901 .893 .885 .877 .870
2 .980 .961 .943 .925 .907 .890 .873 .857 .842 .826 .812 .797 .783 .769 .756
3 .971 .942 .915 .889 .864 .840 .816 .794 .772 .751 .731 .712 .693 .675 .658
4 .961 .924 .888 .855 .823 .792 .763 .735 .708 .683 .659 .636 .613 .592 .572
5 .951 .906 .863 .822 .784 .747 .713 .681 .650 .621 .593 .567 .543 .519 .497
6 .942 .888 .837 .790 .746 .705 .666 .630 .596 .564 .535 .507 .480 .456 .432
7 .933 .871 .813 .760 .711 .665 .623 .583 .547 .513 .482 .452 .425 .400 .376
8 .923 .853 .789 .731 .677 .627 .582 .540 .502 .467 .434 .404 .376 .351 .327
9 .914 .837 .766 .703 .645 .592 .544 .500 .460 .424 .391 .361 .333 .308 .284
10 .905 .820 .744 .676 .614 .558 .508 .463 .422 .386 .352 .322 .295 .270 .247
11 .896 .804 .722 .650 .585 .527 .475 .429 .388 .350 .317 .287 .261 .237 .215
12 .887 .788 .701 .625 .557 .497 .444 .397 .356 .319 .286 .257 .231 .208 .187
13 .879 .773 .681 .601 .530 .469 .415 .368 .326 .290 .258 .229 .204 .182 .163
14 .870 .758 .661 .577 .505 .442 .388 .340 .299 .263 .232 .205 .181 .160 .141
15 .861 .743 .642 .555 .481 .417 .362 .315 .275 .239 .209 .183 .160 .140 .123
16 .853 .728 .623 .534 .458 .394 .339 .292 .252 .218 .188 .163 .141 .123 .107
17 .844 .714 .605 .513 .436 .371 .317 .270 .231 .198 .170 .146 .125 .108 .093
18 .836 .700 .587 .494 .416 .350 .296 .250 .212 .180 .153 .130 .111 .095 .081
19 .828 .686 .570 .475 .396 .331 .277 .232 .194 .164 .138 .116 .098 .083 .070
20 .820 .673 .554 .456 .377 .312 .258 .215 .178 .149 .124 .104 .087 .073 .061
= Discountfactors:Presentvalueof $1 to be receivedafter t years 1/(1 + r)1.
Number
Interest Rate per Year
of Years 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30%
1 .862 .855 .847 .840 .833 .826 .820 .813 .806 .800 .794 .787 .781 .775 .769
2 .743 .731 .718 .706 .694 .683 .672 .661 .650 .640 .630 .620 .610 .601 .592
3 .641 .624 .609 .593 .579 .564 .551 .537 .524 .512 .500 .488 .477 .466 .455
4 .552 .534 .516 .499 .482 .467 .451 .437 .423 .410 .397 .384 .373 .361 .350
5 .476 .456 .437 .419 .402 .386 .370 .355 .341 .328 .315 .303 .291 .280 .269
6 .410 .390 .370 .352 .335 .319 .303 .289 .275 .262 .250 .238 .227 .217 .207
7 .354 .333 .314 .296 .279 .263 .249 .235 .222 .210 .198 .188 .178 .168 .159
8 .305 .285 .266 .249 .233 .218 .204 .191 .179 .168 .157 .148 .139 .130 .123
9 .263 .243 .225 .209 .194 .180 .167 .155 .144 .134 .125 .116 .108 .101 .094
10 .227 .208 .191 .176 .162 .149 .137 .126 .116 .107 .099 .092 .085 .078 .073
11 .195 .178 .162 .148 .135 .123 .112 .103 .094 .086 .079 .072 .066 .061 .056
12 .168 .152 .137 .124 .112 .102 .092 .083 .076 .069 .062 .057 .052 .047 .043
13 .145 .130 .116 .104 .093 .084 .075 .068 .061 .055 .050 .045 .040 .037 .033
14 .125 .111 .099 .088 .078 .069 .062 .055 .049 .044 .039 .035 .032 .028 .025
15 .108 .095 .084 .074 .065 .057 .051 .045 .040 .035 .031 .028 .025 .022 .020
16 .093 .081 .071 .062 .054 .047 .042 .036 .032 .028 .025 .022 .019 .017 .015
17 .080 .069 .060 .052 .045 .039 .034 .030 .026 .023 .020 .017 .015 .013 .012
18 .069 .059 .051 .044 .038 .032 .028 .024 .021 .018 .016 .014 .012 .010 .009
19 .060 .051 .043 .037 .031 .027 .023 .020 .017 .014 .012 .011 .009 .008 .007
20 .051 .043 .037 .031 .026 .022 .019 .016 .014 .012 .010 .008 .007 .006 .005
Note:Forexamplei,f theinterestrateis 10%peryear,thepresentvalueof $1receivedatyear5 is $.621.
7