HELP

Almandine (Pty) Ltd ("Almandine") is company that operates in the construction industry. Almandine specialises in building of modern apartments and operates in the City of Tshwane, Gauteng province. Almandine had two projects during the 2022 financial year, named project Garnet and project Fluorite. Almandine uses an absorption costing system and all its inventory are valued using the first-in-first- out (FIFO) method. The company's 2022 financial year ended on the 28th of February 2022. Budgeted information for the 2022 financial year The budgeted normal production capacity was 3 000 units for project Garnet and 2 000 units for project Fluorite. Total budgeted fixed manufacturing overheads cost was R300 000 000. Fixed manufacturing overheads are allocated to apartments (units) based on normal production capacity. Actual information for the 2022 financial year The total number of constructed and completed units were 4 000, of which 1 125 units related to project Fluorite. The number of units sold for the 2022 financial year were 750 and 2 375 for Fluorite and Garnet respectively. On the 1st of March 2021 there was no opening inventory for project Fluorite; however, project Garnet had 160 completed units to the value of R190 000 000. The actual fixed manufacturing overheads cost for the company were: Fixed manufacturing overheads cost R Depreciation for construction equipment 137 500 000 Construction equipment insurance 62 500 000 Indirect labour (Project managers' salaries) 75 000 000 The total actual fixed manufacturing overheads cost are attributable to products based on actual production of apartments. 6 MAC2601/102/2022 The following actual information relates to Project Garnet only: R % Selling price per unit 1 875 000 Direct material per unit 625 000 Direct labour per unit 575 000 Commission on unit sales 17,5 REQUIRED Marks (7) (3) (a) Calculate Almandine's total fixed manufacturing overheads over/under recovery amount for the financial year ended 28 February 2022 and prepare the related journal entry to be recorded in Almandine's financial records. Note: Provide a journal narration. (b) Mention three possible causes of over/under applied overheads. (c) Prepare an actual direct costing income statement for Project Garnet for the year ended 28 February 2022. (d) Mention what effect an increase in the in the sale of apartments would have had on each of the following, if all other factors remained constant i) Fixed costs ii) Break-even units iii) Margin of safety (12) (1) (1) (1) Hint: State if increase or decrease or remain constant TOTAL (25)