Gate$4$U $($Pty$)$ Ltd $("$Gate$4$U$")$ manufactures and sells steel gates to customers for household

yards. The company was founded by Mr$.$ Mabasa in Soweto township in Gauteng province

and has a $31$ December financial year$-$end.

The following actual information relates to the $2023$ financial year:

Raw material to manufacture one gate $($one unit$)$

Rectangular tubes $(10$ tubes of $6$ metres at R$280$ per tube$)$

R$2800$

Box of welding Rods and gates wheels $($R$900$ per box$)$

R$900$

Gate Paint $($R$650$ per $5$ litres$)$

R$650$

Labour

The company has ten employees $($one supervisor and nine non$-$supervising employees$).$ All

these employees were employed for the full $2023$ financial year.

Manufacturing overheads

Electricity costs per gate $($Variable$)$

R$260$

Factory monthly rental $($Fixed$)$

R$7500$

Supervisor monthly salary

R$20000$

Other expenses

Administrative expenses on average per month $(60\%$ variable$)$

R$2000$

Advertising expenses on average per month $(40\%$ variable$)$

R$500$

Additional information

On $01$ January $2023,$ Gate$4$U had $8$ gates completed with a total cost of R$60400.$

During the $2023$ financial year, Gate$4$U manufactured $98$ gates while $104$ gates were

sold.

Selling price was R$20500$ per gate.

Non$-$supervising employees work $40$ hours per week $(52$ weeks per year with three

weeks for annual leave$)$ at R$15$ per hour. All non$-$supervising employees worked $10$

overtime hours each for the financial year. It is company policy to pay overtime at two

times their normal rates. Gate$4$U charges both the cost of wages paid to employees

on leave and the overtime premium to direct labour.