Question

Sena (Pty) Ltd, which manufactures a single product, has provided the following information for March 2019:

Selling price per unit: R 150

Units in opening inventory: Nil

Units manufactured: 9500

Units sold: 9250



Variable cost per unit:

Direct materials: R 30

Direct labour: R 45

Variable manufacturing overhead: R 18,40

Variable selling and admin: R 13,20

Fixed costs:

Fixed manufacturing overheads: R 97 850

Fixed selling and admin: R 31 500



The total period costs for March 2019 using the marginal costing method:






R 251 450


R 129 300


R 122 100


R 153 600

Answer 1

To calculate the total period costs for March 2019 using the marginal costing method, we need to include the variable selling and administrative costs and the fixed selling and administrative costs.

1. **Calculate Variable Selling and Administrative Costs:**
- Variable selling and administrative cost per unit = R 13.20
- Units sold = 9250

Variable selling and administrative costs = Variable cost per unit × Units sold
= R 13.20 × 9250
= R 122,100

2. **Calculate Total Fixed Selling and Administrative Costs:**
- Fixed selling and administrative costs = R 31,500

3. **Calculate Total Period Costs:**
Total period costs = Variable selling and administrative costs + Fixed selling and administrative costs
= R 122,100 + R 31,500
= R 153,600

Therefore, the total period costs for March 2019 using the marginal costing method is **R 153,600**.