Dashboard My courses/MAC1501-22-S1 / Welcome Message / Assessment 6 Afrika Toro (Pty) Ltd planned to produce 150 000 components that are used in the construction industry. Production overheads are budgeted at R1 200 000 for the year. The standard time to produce one component is 2,5 direct labour hours. Production overheads are apportioned to production based on direct labour hours. The actual results of Afrika Toro for the year revealed that the company produced 157 000 components and that total production overheads were R1 320 000. Total actual direct labour hours recorded were 445 000. Which of the following statements is correct? Marked out of 2.000 Flag question Select one: OA. Overheads of R120 000 were under absorbed and should be prorated across cost of sales and inventory of finished goods. OB. Overheads of R104 000 were over absorbed and should be prorated across cost of sales, inventory of finished goods and Inventory of work-in-progress. O C. Overheads of R104 000 were under absorbed and should be debited to cost of sales. OD. Overheads of R120 000 were under absorbed and should be debited to cost of sales.