ANNEXURE I: FORMATIVE ASSESSMENT $2$

QUESTION $1$

$(29$ marks$)$

Speed HD $($Pty$)$ Ltd $("$Speed$")$ produces three models of cars for sale in the automotive retail market. Speed currently operates a standard absorption costing system.

Budgeted information for the financial year ended $31$ December $2024$ is as follows:

$\backslash$table$[[,$Models,Total$],[,$Momo,Cannal,Bulo$],[,$Rands,Rands,Rands,Rands$],[$Sales$,64000000,96400000,104000000,264400000],[$Direct material, $000),000),(41200000),(88200000)$