,8/14/25, 11:26 PM Assessment 1: Attempt review
Question 2
Complete
Marked out of 1.00
Ubuntu Essence (Pty) Ltd is a small business that makes and sells two types of Aroma therapy doughs, Relax Dough and
Focus Dough. The company uses absorption costing to value its inventory.
The following actual information is available for the year ended 31 July 2025.
Details Relax Dough Focus Dough
Units Produced 11 000 9 000
Units Sold 10 000 8 500
R R
Selling Price per unit 180 200
Direct Material cost per unit 40 50
Direct Labour cost per unit 70 80
Variable Manufacturing Overhead per unit 30 35
Budgeted production is equal to actual production.
The actual fixed manufacturing overheads amount to R320 000, and the budgeted fixed manufacturing overhead was
R300 000.
The fixed manufacturing overheads are allocated based on units.
Variable selling costs amount to R20 per unit for both products, and fixed selling costs amount to R120 000
The budgeted fixed overhead absorption rate of Ubuntu Essence is:
Select one:
A. R16,00
B. R15,00
C. R17,30
D. R16,21
E. None of the above
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, 8/14/25, 11:26 PM Assessment 1: Attempt review
Question 3
Complete
Marked out of 1.00
Ubuntu Essence (Pty) Ltd is a small business that makes and sells two types of Aroma therapy doughs, Relax Dough and
Focus Dough. The company uses absorption costing to value its inventory.
The following actual information is available for the year ended 31 July 2025.
Details Relax Dough Focus Dough
Units Produced 11 000 9 000
Units Sold 10 000 8 500
R R
Selling Price per unit 180 200
Direct Material cost per unit 40 50
Direct Labour cost per unit 70 80
Variable Manufacturing Overhead per unit 30 35
Budgeted production is equal to actual production.
The actual fixed manufacturing overheads amount to R320 000, and the budgeted fixed manufacturing overhead was
R300 000.
The fixed manufacturing overheads are allocated based on units.
Variable selling costs amount to R20 per unit for both products, and fixed selling costs amount to R120 000
For this question only assume the following:
i. The budgeted fixed manufacturing overhead allocation rate per unit is R18.
ii. Assume other information remains the same.
What effect will the under or over allocation of the FMO have on the income statement of Ubuntu Essence:
Select one:
A. None of the options
B. There will be no impact on the Net Profit
C. The Net Profit will decrease by R40 000
D. The Net Profit will increase by R20 000
E. The Net Profit will increase by R40 000
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=28784375&cmid=1089289 3/20
Question 2
Complete
Marked out of 1.00
Ubuntu Essence (Pty) Ltd is a small business that makes and sells two types of Aroma therapy doughs, Relax Dough and
Focus Dough. The company uses absorption costing to value its inventory.
The following actual information is available for the year ended 31 July 2025.
Details Relax Dough Focus Dough
Units Produced 11 000 9 000
Units Sold 10 000 8 500
R R
Selling Price per unit 180 200
Direct Material cost per unit 40 50
Direct Labour cost per unit 70 80
Variable Manufacturing Overhead per unit 30 35
Budgeted production is equal to actual production.
The actual fixed manufacturing overheads amount to R320 000, and the budgeted fixed manufacturing overhead was
R300 000.
The fixed manufacturing overheads are allocated based on units.
Variable selling costs amount to R20 per unit for both products, and fixed selling costs amount to R120 000
The budgeted fixed overhead absorption rate of Ubuntu Essence is:
Select one:
A. R16,00
B. R15,00
C. R17,30
D. R16,21
E. None of the above
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, 8/14/25, 11:26 PM Assessment 1: Attempt review
Question 3
Complete
Marked out of 1.00
Ubuntu Essence (Pty) Ltd is a small business that makes and sells two types of Aroma therapy doughs, Relax Dough and
Focus Dough. The company uses absorption costing to value its inventory.
The following actual information is available for the year ended 31 July 2025.
Details Relax Dough Focus Dough
Units Produced 11 000 9 000
Units Sold 10 000 8 500
R R
Selling Price per unit 180 200
Direct Material cost per unit 40 50
Direct Labour cost per unit 70 80
Variable Manufacturing Overhead per unit 30 35
Budgeted production is equal to actual production.
The actual fixed manufacturing overheads amount to R320 000, and the budgeted fixed manufacturing overhead was
R300 000.
The fixed manufacturing overheads are allocated based on units.
Variable selling costs amount to R20 per unit for both products, and fixed selling costs amount to R120 000
For this question only assume the following:
i. The budgeted fixed manufacturing overhead allocation rate per unit is R18.
ii. Assume other information remains the same.
What effect will the under or over allocation of the FMO have on the income statement of Ubuntu Essence:
Select one:
A. None of the options
B. There will be no impact on the Net Profit
C. The Net Profit will decrease by R40 000
D. The Net Profit will increase by R20 000
E. The Net Profit will increase by R40 000
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=28784375&cmid=1089289 3/20
