1.1Question 1 [17 Marks, 31 minutes] 1.1 FANTASY designs and makes a single product, the X4, used in the telecommunications industry. The organisation has a goods received store which employs staff who carry out random checks to ensure materials are of the correct specification. In addition to the random checks, a standard allowance is made for failures due to faulty materials at the completion stage and the normal practice is to charge the cost of any remedial work required to the cost of production for the month. Once delivered to the customer, any faults discovered in the X4 during its warranty period become an expense of the customer support department. At the end of each month, management reports are prepared for the board of directors. These identify the cost of running the stores and the number of issues, the cost of production and the number of units manufactured, and the cost of customer support. 1.2 Tatenda Pty manufactures plastic toys in two processes: Process M and Process F. Information about the two processes is given below: Each toy sells for N$15 and has direct material cost of N$9. All material is introduced in the process at the beginning of Process M. The monthly demand for toys manufactured by Tatenda Pty is 30000 toys