$1\mathrm{.}3.$ Using the overhead absorption rate calculated in question $1\mathrm{.}2$ and the information provided below, answer the following question.

The product design and development team at ABC Limited has completed the development of a prototype of a product to be manufactured during the forthcoming quarter. The prototype passed through the three production departments $-$ P$1,$ P$2,$ and P$3.$ The following budgeted information on the prototype is available:

The following information on material usage relates to the prototype:

$\backslash$table$[[$Direct material requisitioned,R$97470\mathrm{.}43],[$Direct material returned to store,R$8396\mathrm{.}17]]$

Drect labour resorded apoinst the problyper

$\backslash$table$[[$Production department P$1,145$ hours in fead $05$ pee hour$],[$Production dapartmem $P_2,139$ hous at R$5400$ per hour$],[$Production department P$3,273$ houts at P$61,00$ per hout$]]$

A special mbctine was hised to product the protstrpet in a cost of R$2950$

Actual machine hours rocorded against the probolyee.

$\backslash$table$[[$Production degantint P$1,411$ hours$],[$Prod$\_$ction departmart P$2,657$ hous$],[$Production dapartmam P$3,502$ hours$]]$

Price quoted for the prolstype, incusing detriny is R$1$Res $000.$

Rec, absorts non production evehesd usne the following predetermined avortiead abeorpien rates.

$\backslash$table$[[$Administration and general overthilid,$10\%$s of prod.ction costs$],[$Seling and detricuton ovotessd,$12\%$ of seling prise$]]$

REQUMED:

The produst design and development leam is cerreineed twot the matulacturng and nonmanufaturing coses of the prototype are unl waly to bed signtikanty d fiererth from those of the firal produst. Therefore, presem an aralys's of $($h$)$ tha votsl coet and proft oc loss alifbubabis to each unif of the product.