MAC3761_2021_Assignment 2.

MAC3761/Assignment02/0/2021 1 Take note of the following:  THIS ASSIGNMENT MUST ONLY BE SUBMITTED ONLINE VIA myUNISA.  The due date for this assignment is 25 August 2021.  Ensure that you receive confirmation that your assignment has been submitted successfully online. 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 had been submitted successfully, then your assignment was not submitted. Submit your assignment again until you have received confirmation that your assignment was submitted successfully.  This assignment is based on Tutorial letters 102, 103, 104 and 105.  This assignment must be submitted strictly on or before the submission platform closes. The assignment submission platform will close automatically on 25 August 2021. You will therefore not be able to submit after this date.  DO NOT send this assignment to the email address. Assignments are only marked via the myUnisa platform, therefore emailed assignments will not be marked.  In the unlikely event that you experience technical issues and/or any challenges regarding submitting this assignment, you must immediately notify the lecturers via e-mail at .  It is not possible to submit/re-submit your assignment after the submission platform is closed, and students who did not submit this compulsory assignment will receive a 0% mark.  The Unisa policy on plagiarism (Policy for Copyright Infringement and Plagiarism) is applicable to this assignment. You are reminded that your assignment must be your own work. By submitting this assignment, you confirm that you accept and have adhered to the terms of the plagiarism declaration.  Take note of the following:  If you are found to be in violation of the declaration, you will receive 0% for Assignment 2.  This assignment is not a group assessment and must be done individually, alone and unaided.  If you copied all or a portion of your assignment from someone else (including from tutors, online/social media platforms, study groups etc) both you and the person(s) from whom you copied will receive 0%. If any similar looking/worded assignments are found, they will be considered a violation of the declaration.  This declaration holds you accountable for completing your assignment on your own. MAC3761 MANAGEMENT ACCOUNTING III COMPULSORY ASSIGNMENT 02/2021 Academic Year Type Assignment number Due date Unique number 2021 Written 02 25 August 2021 MAC3761/Assignment02/0/2021 2 [TURN OVER] PLAGIARISM DECLARATION  By submitting MAC3761 Assignment 02, I declare as follows:  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 where applicable or necessary, I have referenced all the sources that I used.  I have not allowed any other student(s) to copy my work.  I have not used and/or purchased any third-party solutions to submit as my own work.  I know that if I am found to be in violation of this declaration, I will receive 0% for the assignment involved. Take note: You do not have to submit the declaration. By submitting any MAC3761 assignment, you automatically declare that you adhere to all the above with regard to the specific assignment. PLEASE NOTE: 1. This document consists of 13 pages in total 2. All questions must be answered, and all calculations must be shown. 3. Each sub-question (ie. a, b, c…) attempted must be started at the top of a new page. 4. You can either type or handwrite. 5. For handwritten assignments, you must write legibly and clear on a ruled paper (for example, an examination pad). You must not use a pencil or a red pen. A black pen is recommended. 6. Your answer sheet must only be a single PDF document, no other document type can be uploaded on myUnisa. 7. You must submit this assignment on the correct unique number (). 8. Your answer sheet (PDF document) must not be password-protected, corrupted, or read-only. These types of documents cannot be marked and will thus be graded a 0% mark. 9. You must number and upload the pages of your answer sheet (PDF document) sequentially. 10. Once uploaded, you must review your PDF document and ensure that you uploaded the correct document and that all the pages are included, legible, clear and complete. 11. It is your responsibility to ensure that you have uploaded the correct PDF document for your answer sheet and that you have uploaded on the correct unique number (). PROPOSED TIMETABLE Question Section Topics Marks Time 1 Costing Direct and absorption costing; Decisionmaking, CVP relationships; Performance management; and Transfer pricing. 45 81 minutes 2 Finance Analysis of financial and non-financial information; Capital budgeting; valuations; Business valuations; and Business risks. 55 99 minutes MAC3761/Assignment02/0/2021 3 [TURN OVER] QUESTION 1 (45 marks; 81 minutes) Qhubeka (Pty) Ltd (“Qhubeka”) is a small company and was formed three years ago by Nelson Mthembu, in an effort to make locally produced electronic appliances more accessible to South Africans. Qhubeka produces two types of microwave ovens for domestic use and, at this stage, these are the only products manufactured by the company. Qhubeka’s financial year-end is 31 March, and the company uses the absorption costing system and values all its inventories using the first-in-first-out (FIFO) method. The company generates revenue as follows: (i) the sale of the two types of microwave ovens: Instaheat and Grillmaster; (ii) the after-sale service, maintenance and repairs of the microwaves. The Instaheat unit is an entry-level microwave and the Grillmaster has a convenient grill and bake function in addition to only heating. Various divisions are involved in the manufacturing process such as the Cover Division, Magnetron Division and the Control Switches division. Each division is responsible for its own operational and investment decisions and “controllable net assets” are used as the investment figure when divisional performance is evaluated. Qhubeka’s head office is responsible for all the financing decisions, and the respective divisions may not use their own discretion on how they borrow funds. The Qhubeka Head Office is responsible for all administration-related decisions relating to the divisions. A required rate of return of 8% is used in the divisional performance measurement