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 10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 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 R 13 014 750 and the total actual FMO was R12 498 600. 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. R1 920 000 b. R2 500 000 c. R2 400 000 d. None of the options e. R2 000 000
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 10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 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 R 13 014 750 and the total actual FMO was R12 498 600. 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. R1 920 000 b. R2 500 000 c. R2 400 000 d. None of the options e. R2 000 000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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
10 000 15 000 20 000 Actual number of inverters produced 8 000 16 000 21 000 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 R
13 014 750 and the total actual FMO was R12 498 600. 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. R1 920 000 b. R2 500 000 c. R2 400 000 d. None of the options e. R2 000 000
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