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Tshintsha ( Pty ) Ltd is a manufacturer of three types of inverters namely grid - tied, off - grid and hybrid inverters. Tshintsha uses
Tshintsha Pty Ltd is a manufacturer of three types of inverters namely gridtied, offgrid and hybrid inverters. Tshintsha uses an absorption costing system. The following information is available for the financial year ended February :
Product
Gridtied
Offgrid
Hybrid
Budgeted number of inverters produced
Actual number of inverters produced
Budgeted machine hours per unit
Actual machine hours per unit
The fixed manufacturing overheads FMO are allocated to products based on the machine time spent. The total budgeted FMO for the year was R and the total actual FMO was R
There was no budgeted or actual opening or closing inventory of any type.
For this question only assume that the FMO allocation rate per machine hour is R
The FMO allocated to product Gridtied in the Actual statement of profit and loss for the financial year is:
Select one:
a
R
b
R
c
R
d
None of the options
e
R
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