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CMA512S-COST AND MANAGEMENT ACCOUNTING 102-2ND OPP-DEC 2025 |
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nAmlBIA unlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
A,UALIFICATION: BACHELOR OF ACCOUNTING
QUALIFICATION CODE: 07BGAC LEVEL: 5
COURSE CODE: CMA512S
SESSION: DECEMBER 2025
COURSE NAME: COST & MANAGEMENT ACCOUNTING 102
PAPER: THEORY AND CALCULATIONS
DURATION: 3 HOURS
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINERS Gerhardt Sheehama, Ester Sakeus and Aina lckua
MODERATOR Helmut Namwandi
INSTRUCTIONS
1. This question paper consists of SIX (6) questions
2. Answer ALL questions in blue or black ink only. NO PENCIL.
3. Start each question on a new page, and number the answers correctly and clearly.
4. Write clearly and neatly, showing all your formulas and workings.
5. Questions relating to this examination may be raised in the initial 30 minutes after the
start of the examination. Thereafter, candidates must use their initiative to deal with
any perceived errors or ambiguities, and any assumptions made by the candidate
should be clearly stated.
PERMISSIBLE MATERIALS
• Silent, non-programmable calculators
THIS EXAMINATION QUESTION PAPER CONSISTS OF _6_ PAGES (excluding this cover page)
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QUESTION 1
[20 MARKS]
For questions 1.1 - 1.10, just write the answer only (the correct letter chosen) in your answer
sheet/answer book and not on the question paper. Do not copy the question and the answers again.
1.1 Where there is mass production of homogeneous units or where few products are produced
in batches, which of the following cost drivers would be regarded as the best base for the
determination of factory overhead absorption rate?
a) Number of units produced
b) Labour hours
c) Prime cost
d) Machine hours
e) None of the above
1.2 It is possible for an item of overhead expenses to be shared amongst many departments. It is
also possible that this same item may relate to just one specific department. If the item was
charged specifically to a single department, this would be an example of?
a) Tracing
b) Allocation
c) Re-apportionment
d) Absorption rate
e) None of the above
1.3 The predetermined overhead rate is calculated as?
a) Budgeted total manufacturing overhead divided by the budgeted activity level of
application base
b) Budgeted total manufacturing overhead divided by the actual activity level of
application base
c) Actual total manufacturing overhead divided by budgeted activity level of
application base
d) Actual total manufacturing overhead divided by actual activity level of application
base
e) None of the above
1.4 Cost apportionment involves:
a) The allocation of direct costs to departments
b) Sharing out of ove rheads to service departments
c) The sharing out of common costs to departments
d) The sharing out of costs to products
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e) None of the above
1.5 Which of the following would be an inappropriate method of apportioning service department
costs?
a) Apportioning based on floor area
b) Apportioning based on service department activity
c) Sharing costs equally between departments
d) Apportioning based on number of employees
e) None of the above
1.6 Overtime premium is normally classified under which element of product cost?
a) Indirect material
b) Direct labour
c) Overheads
d) Prime cost
e) None of the above
1.7 Which of the following is not an employee fringe benefit
a) Authorization to use a company car for personal use
b) Housing allowance
c) Employer-sponsored gym subscriptions
d) Money paid as overtime
e) None of the above
1.8 Workers of Malibu Seawork have not worked for two days due to the breakdown of the fish
processing plant. The two days are normally referred to as :
a) Holiday time
b) Vacation leave
c) Idle time
d) Labour recovery rate
e) None of the above
1.9 Which of the following statements regarding employee remuneration is false?
a) Income tax (PAYE) on employees' salaries is calculated on gross pay
b) Employees' pension fund contribution is normally calculated on basic wages
c) Tax deducted from employees' salaries is paid over to the Receiver of Revenue by the
employer
d) On public holidays, employees will still be paid their normal salary
e) None of the above
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1.10 Overtime premium pay may be correctly defined as:
a) The bonus paid to skilled workers .
b) The increased payment during overtime hours is due to increased rates of pay.
c) The payment for all hours is more than the basic working week.
d) A premium paid to workers to compensate for fatigue.
e) None of the above
QUESTION 2
[19 MARKS]
Chick McFarm has developed a new recipe to cook chicken pieces and has decided to open a takeaway
restaurant in Katutura. Chick McFarm asks NUST for help with the market research.
The University finds that Chick McFarm should sell 700 chicken pieces, on average, per month .
The following total costs are available:
• Chicken pieces
N$31500
Other ingredients:
• Salt
N$50
• Onion powder
N$385
• Garlic powder
N$455
• Olive oil
N$840
Chick McFarm provides you with other costs that should be incurred in the take-way restaurant for
the month as follows :
• Chef salary
N$25 500
• Supervisor's salary
N$50 000
• Depreciation of cooking equipment N$15 000
• Cleaner salary
N$5 000
Requirements: Calculate the following total costs per month
a) Indirect materials cost
b) Prime cost
c) Manufacturing overhead cost
d) Conversion cost
e) Indirect labour cost
MARKS
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3
5
3
3
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QUESTION 3
[15 MARKS]
Fashionista, a self-employed worker started a business of selling Fashion T-shirts by investing
N$200 000 of his savings into the business. He imports the fashion T-shirts from Brazil.
On July 2025, there was a theft of the Fashion T-shirts housed at Fashionista's warehouse. He is unsure
of the number of Fashion T-shirts that were stolen. However, with his limited knowledge of accounting
this has been an epic fail. Fashionista has asked you to assist in this regard, as you are studying towards
your Bachelor of Accounting degree. The following information, as set out below, has been provided
to you:
■ The inventory recovered from the theft amounted to N$14 400.
■ The inventory balance of Fashion T-shirts on hand on 31 July 2025 were 100 at N$75 each.
■ 8 August 2025: 400 Fashion T-shirts were purchased @ N$220.00 per T - Shirt. The supplier
gave a discount of 5% on this price due to early payment.
Date of receipt
Units purchased Cost
(T-Shirts)
Date of dispatch Units sold
(T- Shirts)
Selling
Price
7 August 2025
200
8 August 2025
400
N$43 200
(in total)
12/8/2025
15/8/2025
500 N$250
so
(see notes 1 below)
13 August 2025 450
N$200
(per unit)
NB: Notes 1: Fashionista returned Fashion T-shirts on 15 August 2025 to the supplier. These Fashion
T-shirts relate to the purchase made on 8 August 2025.
Requirements:
Prepare a detailed stores ledger card and calculate the value of the remaining closing inventory on
August 15, 2025, after the theft took place, using the weighted average (AVCO) inventory valuation
method. (15)
QUESTION 4
[10 MARKS]
Kandetu and Collen are vessel technicians at Sea Sharks, a fishing company. Kandetu is remunerated
at N$50 per hour and Collen at N$45 per hour. Both employees have a 40-hour work week.
The following information is available in respect of deductions from their gross remuneration:
• Taxable medical aid : 5% of the basic wage payable by each employer and the employee
• Pension fund: 8% of the basic wage payable by each employer and the employee
• PAYE: 25% for Kandetu and 18% for Collen
• Social Security: 0,9% of gross income payable by each of the employer and the employee
(Note: In Namibia, this contribution is limited to a maximum of N$91 per month)
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The two employees worked as follows for the week ending 11 February 2025
Kandetu
Collen
Hours
Hours
Monday
10
10
Tuesday
10
8
Wednesday
8
9
Thursday
10
9
Friday
8
8
Saturday
4
0
Sunday
0
3
Overtime is remunerated as follows :
Normal overtime: 1½ times the basic rate
Sundays and public holidays : twice the basic rate
Requirement:
Calculate the net wage payable to Collen to the nearest dollar
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QUESTION 5
[12 MARKS]
The NUST's transport department operates a fleet of various vehicles . These vehicles are used as
needed by the various schools. Each month a statement is prepared for the transport department
comparing actual results with the budget.
One of the items in the transport department's monthly statement is the cost of vehicle maintenance.
This maintenance is perfo rmed by the department's employees. To facilitate his contro l, the transport
manager has asked that future statements show vehicle maintenance costs analysed into fixed and
variable costs . Data from the previous six months July to December 2010 inclusive are given below:
Month
Vehicle maintenance costs
Vehicle running hours
N$
July
12 000
10 500
August
8 250
6 500
September
7 500
4 000
October
9 750
7 500
November
10 750
9 000
December
19 500
12 000
Requirements:
5.1 Use the high-low method to determine the total fixed cost and the variable cost per hour. (4)
5.2 What vehicle maintenance costs would you expect to be incurred at the level of 11,000
running hours?
(5)
5. 3 Determine the fixed cost per hour to be incurred at the level of 3 000 running hours?
(3)
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QUESTION 6
{24 marks)
Lewi Limited has provided you with the following information for the year ended 31 December 2024:
Inventory
1/1/2024 31/12/2024
N$
N$
Finished products
27 000
25 000
WIP
25 000
27 000
Direct material
65 000
52 000
N$
Sales
400 000
Direct labour
73 000
Telephone (60% factory; 40% administration)
5 000
Water and lights {70% factory; 30% administration)
10 000
Direct material purchased
20 000
Indirect material used
9 800
Freight on direct material
2 000
Freight on sales
1000
Depreciation (50% factory; 50% administration)
19 000
Indirect labour
15 400
Rent (80% factory; 20% administration)
40 000
Requirements:
6.1 Compile a Statement of cost of goods manufactured and sold for the year
ended 31 December 2024.
(21)
6.2 If 1000 units were manufactured, what was the cost of one unit?
(3)
END OF EXAMINATION QUESTION PAPER
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