MAC3701
Assignment 1 Semester 1 2025
Unique Number:
Due Date: March 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, UNISA 2025 MAC3701-25-S1 Welcome Message Assessment 1
QUIZ
Friday, 14 March 2025, 13:01 PM
Finished
Friday, 14 March 2025, 14:58 PM
56 mins 13 secs
1 of 25 3/13/2025, 12:00
Downloaded by: deltamnandi | Want to earn
Distribution of this document is illegal R13,625 per year?
, Complete
Marked out of 1.00
Khanya runs a small business, Khanya’s Balms (Pty) Ltd, where she produces and
sells two types of natural lip balm, namely Vitamin E (“VitE”) and Natural. One
container with 10 grams (g) of lip balm is a single unit. The main ingredients in both
types of lip balm are beeswax and shea butter.
Khanya’s Balms has a March �nancial year-end, uses the absorption costing system,
and values all its inventories using the First-in-First-out (FIFO) method. Fixed
manufacturing overheads are allocated based on direct labour hours.
The following budgeted and standard information per unit relates to the month of
March 2025:
Selling price per unit R70 R60
Beeswax per unit 5 grams 4 grams The purchase price is R300 per
kilogram
Shea butter per unit 4 grams 6 grams The purchase price is R170 per
kilogram
Vitamin E oil 1 millilitre The purchase price is R4 000 per
litre
Direct labour time per 12 minutes 9 minutes The direct labour rate is R40 per
unit hour
Container 1 container 1 container The purchase price is R2,50 per
container
Variable R3 per unit R2 per unit
manufacturing
overheads (VMO)
Fixed manufacturing The standard FMO absorption
overheads (FMO) rate is R64 per direct labour hour.
Selling and distribution The variable selling and
costs distribution costs are 5,0% of the
selling price. The �xed distribution
cost is R8 000 for the month.
• The budgeted monthly production and sales units are 2 000 VitE and 3 000 Natural
units. These units are equivalent to the normal production capacity. No direct
material losses or gains occur during the production process.
• No opening and closing inventory of �nished goods and direct raw materials
inventory was budgeted.
• Khanya budgeted for �xed administrative salaries of R7 000 and other �xed non-
manufacturing costs of R15 000
Khanya’s total budgeted �xed cost to be used in the break-even unit calculation for
March 2025 is:
Select one:
A. R84 400
2 of 25 3/13/2025, 12:00
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Distribution of this document is illegal R13,625 per year?
Assignment 1 Semester 1 2025
Unique Number:
Due Date: March 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, UNISA 2025 MAC3701-25-S1 Welcome Message Assessment 1
QUIZ
Friday, 14 March 2025, 13:01 PM
Finished
Friday, 14 March 2025, 14:58 PM
56 mins 13 secs
1 of 25 3/13/2025, 12:00
Downloaded by: deltamnandi | Want to earn
Distribution of this document is illegal R13,625 per year?
, Complete
Marked out of 1.00
Khanya runs a small business, Khanya’s Balms (Pty) Ltd, where she produces and
sells two types of natural lip balm, namely Vitamin E (“VitE”) and Natural. One
container with 10 grams (g) of lip balm is a single unit. The main ingredients in both
types of lip balm are beeswax and shea butter.
Khanya’s Balms has a March �nancial year-end, uses the absorption costing system,
and values all its inventories using the First-in-First-out (FIFO) method. Fixed
manufacturing overheads are allocated based on direct labour hours.
The following budgeted and standard information per unit relates to the month of
March 2025:
Selling price per unit R70 R60
Beeswax per unit 5 grams 4 grams The purchase price is R300 per
kilogram
Shea butter per unit 4 grams 6 grams The purchase price is R170 per
kilogram
Vitamin E oil 1 millilitre The purchase price is R4 000 per
litre
Direct labour time per 12 minutes 9 minutes The direct labour rate is R40 per
unit hour
Container 1 container 1 container The purchase price is R2,50 per
container
Variable R3 per unit R2 per unit
manufacturing
overheads (VMO)
Fixed manufacturing The standard FMO absorption
overheads (FMO) rate is R64 per direct labour hour.
Selling and distribution The variable selling and
costs distribution costs are 5,0% of the
selling price. The �xed distribution
cost is R8 000 for the month.
• The budgeted monthly production and sales units are 2 000 VitE and 3 000 Natural
units. These units are equivalent to the normal production capacity. No direct
material losses or gains occur during the production process.
• No opening and closing inventory of �nished goods and direct raw materials
inventory was budgeted.
• Khanya budgeted for �xed administrative salaries of R7 000 and other �xed non-
manufacturing costs of R15 000
Khanya’s total budgeted �xed cost to be used in the break-even unit calculation for
March 2025 is:
Select one:
A. R84 400
2 of 25 3/13/2025, 12:00
Downloaded by: deltamnandi | Want to earn
Distribution of this document is illegal R13,625 per year?
