ANNEXURE I: FORMATIVE ASSESSMENT $2$

QUESTION $3$

$(26$ marks$)$

BRIKZ $($Pty$)$ Ltd $("$BRIKZ$")$ is a small and exclusive bricks manufacturing entity. BRIKZ produces specialised building blocks, and the manufacturing process is labour intensive. BRIKZ applies a standard absorption costing system.

The management of BRIKZ emphasised that the performance of these building blocks needs to be well monitored in order to ensure its sustainability.

The following is an extract of the standards for June $2024$ for the production and sale of $15000$ units of building blocks:

Standard information per building block:

$\backslash$table$[[$Selling price,R$50$ per building block$],[$Direct materials,$],[$Sand$,],[$Cement$,1\mathrm{.}6kg$ at $R8$ per $kg$