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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 grid-tied, off-grid and hybrid inverters. Tshintsha uses an absorption costing system. The following information is available for the financial year ended 29 February 2024:
Product
Grid-tied
Off-grid
Hybrid
Budgeted number of inverters produced
10000
15000
20000
Actual number of inverters produced
8000
16000
21000
Budgeted machine hours per unit
1,25
1,0
1,4
Actual machine hours per unit
1,2
1,1
1,3
The fixed manufacturing overheads (FMO) are allocated to products based on the machine time spent. The total budgeted FMO for the year was R13014750 and the total actual FMO was R12498600.
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 R200
The FMO allocated to product Grid-tied in the Actual statement of profit and loss for the 2024 financial year is:
Select one:
a.
R1920000
b.
R2500000
c.
R2400000
d.
None of the options
e.
R2000000

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