Mabidi $($Pty$)$ Ltd $("$Mabidi$")$ is a manufacturer of special durable tractor tyres $($units$).$ Mabidi

was established in $2002$ by three close friends from university, Motsamai, Wesley and Leeto.

Mabidi manufactures two types of tractor tyres: smaller front tires $("$FT$")$ and larger rear

tires $("$RT$").$ Mabidi has a $31$ August year$-$end.

Mabidi uses the absorption costing system to value its inventories $($tyres$).$ Mabidi operates

in a tough competitive environment and therefore uses activity$-$based costing $("$ ABC $")$ to

allocate g fixed manufacturing overheads.

The budgeted financial information for the correctly identified activities and the related fixed

manufacturing overheads costs are as follows:

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The following budgeted financial information for the two products was prepared for the

financial year ended $31$ August $2024$:

Additional information relating to the $2024$ financial year:

The number of production runs are based on production batch sizes $($units$).$

The FT product type total budgeted direct material and direct labour costs are

R$3000000$ and R$2200000,$ respectively.

The RT product type total budgeted direct material and direct labour costs are

R$5000000$ and R$3000000,$ respectively.

The actual manufacturing overheads incurred by Mabidi in the $2024$ financial year

amounted to R$9$ million. The total actual machine hours for the same financial year

were $150000$ machine hours.

One unit of RT takes three times the machine time that one unit of FT takes, due to

its size and thickness.

REQUIRED

Round to the nearest Rand throughout your calculations.