Exam (elaborations)
Exam (elaborations) MAC 3701 MAC3701 Assignment 2 Semester 1 2017
- Course
- Institution
Exam (elaborations) MAC 3701 MAC3701 Assignment 2 Semester 1 2017
[Show more]
Seller
Follow
Courtneyy
Reviews received
Content preview
MAC3701/Assignment02/1/2017COMPULSORY ASSIGNMENT 02/2017 (Semester 1)
Semester Assignment no Due date Unique number
First 2 29 March 2017 834198
Before you start this assignment:
Please study the relevant sections in the study material as indicated on page 11 of Tutorial letter
101 before answering the assignment.
Complete the assignment within the prescribed time limit of three (3) hours (1,5 hours per
question). It is always a good idea to practice proper time-management when attempting
questions. This enables optimum examination preparation.
You must submit your answers so that they reach the university on or before the due date. Please
allow adequate time for postal delays. Any assignment received after the due date will not be
marked and you will receive 0% for the assignment.
It is preferable that you should submit your assignment online via myUnisa. Ensure that you
receive confirmation that your assignment was successfully submitted (online) or received by
Unisa (post). Keep your online submission receipt number or a screenshot of your submission
receipt as proof of online submission. If you did not receive confirmation that your assignment was
submitted successfully, then your assignment was not submitted. Please submit your assignment
again until you have received confirmation that your assignment was submitted successfully.
Please refer to Unisa’s policy on plagiarism. You are reminded that your assignment should be
your own work.
By submitting your assignment you confirm that you accept and will adhere to the terms of the
plagiarism declaration. Please note:
o If you are found to be in violation of the declaration you will receive 0% for Assignment 02.
o If you copied all or a portion of your assignment from someone else (including tutors, online
study group, etc.), both you and the person(s) you copied from will receive 0%. If any similar-
looking/worded assignments are found it will be considered to be a violation of the declaration.
o This declaration holds you accountable for completing your assignment on your own.
PLAGIARISM DECLARATION:
By submitting any MAC3701 assignment, I 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 I am found guilty of plagiarism;
This assignment, submitted by myself, is my own work and that I have referenced all the
sources that I have used;
I have not allowed any other student to copy my work;
I know that if I am found to be in violation of this declaration I will receive 0% for the assignment
involved.
Please note: You do not have to submit the declaration. By submitting any MAC3701 assignment,
you automatically declare that you adhere to all the above with regard to the specific assignment.
1
, QUESTION 1 50 Marks
Delight Spreads (Pty) Ltd (DS) is a small enterprise that produces and sells two types of macadamia-nut
spreads; macadamia natural spread (MNS) and macadamia sweet spread (MSS). The losses which occur
in the production process are considered immaterial. Each type of spread is packed and sold in a glass
bottle containing 250g of spread. These bottled-spreads are mainly sold at food markets and other flea
markets.
DS is the brain child of three friends, Ester, Parusha and Sibongile. Ester and Parusha are mainly
responsible for the production function while Sibongile is responsible for the marketing, procurement,
finance and administrative functions. The three friends approved the following budget:
1. ANNUAL BUDGET FOR THE FINANCIAL YEAR-ENDING 31 OCTOBER 2017:
MNS MSS Total
R R R
Sales 1 795 200. 1 305 600. 3 100 800.
Less: Manufacturing cost of sales (1 493 332) (990 748) (2 484 080)
Direct raw material 850 272. 534 208. 1 384 480.
Direct labour 204 000. 152 320. 356 320.
Variable manufacturing overheads 228 480. 163 200. 391 680.
Packing material (glass bottles) 39 168. 26 112. 65 280.
Fixed manufacturing overheads 171 412. 114 908. 286 320.
Gross profit 301 868. 314 852 616 720.
Less: Administrative and selling costs (357 040)
Computer depreciation 16 000.
Insurance premiums 46 000.
Cleaning contract fees 50 000.
Administrative employee costs 60 000.
Selling costs (note 1.5) 155 040.
Sundry fixed costs 30 000.
Net profit before tax R 259 680.
The 2017 financial year budget was prepared on the basis of the following assumptions:
1.1. The selling prices were budgeted at R55 for MNS and R60 for MSS per unit. The budgeted sales
mix was 1,5:1 for MNS and MSS.
1.2. DS budgeted to produce 32 640 units of MNS and 21 760 units of MSS. All units produced are
expected to be sold in the same financial year.
1.3. No opening and closing inventory were budgeted for all types of inventories.
1.4. Fixed manufacturing overheads were allocated on the basis of budgeted production units.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Courtneyy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.67. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83225 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now