ADVANCED DIPLOMA IN FINANCIAL MANAGEMENT- ACADEMIC AND ASSESSMENT CALENDAR DISTANCE 9.2.2 ADVANCED MANAGERIAL ACCOUNTING QUESTION ONE [100] [30] Brass Ltd produces two products, the Masso and the Rasso. Budgeted data relating to these products on a unit basis for September are as follows: Masso Russo Selling price R150 R100 Materials R80 R30 Commission R30 R20 Each unit of product incurs costs of machining and assembly. The total capacity available for September is budgeted to be 700 machining and 1000 hours of assembly, the cost of this capacity being fixed at R7000 and R10 000 respectively for the month, whatever the level of usage made of it. The number of hours required in each of these departments to complete one unit of output is as follows: Department Masso Russo Machining 1 2 Assembly 2.5 2 Under the terms of the South African government special controls have been introduced whereby the selling prices are fixed and the maximum permitted output of either product is 400 units. At the present controlled selling prices the demand for the product exceeds this considerably. REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022 28