1. Read through the data below and answer the questions that follows:

Q2 Production volume 7 500 units12 500 units 4 000 units R4 R18 R47 4 Direct labour cost per unit Material cost per unit Selling price per unit Materials movements (in total) Machine hours per unit Set-ups (in total) Proportion of engineering work Orders packed (in total) R8 R25 R80 25 R6.40 R16 R68 50 0.2 10 50 % 0.5 0.5 3096 20% Overhead Activities cost Material receiving and handling Machine maintenance and depreciation Set-up labour Engineering Packing Total 150 000 390 000 18 688 100 000 60 000 718 688 Betrax launching a new product Betrax is planning to launch a new component for product Q1. Production volume will be limited, with only 128 components to be produced in total Betrax expects the manufacture of the first component to take 25 direct labour hours. It is anticipated there will be a 90% learning curve that will continue until