NAnswer ALL the questions in this section.QUESTION $11\mathrm{.}1$ Use the information provided below to answer the following questions.INFORMATIONGgeberha Manufacturing Enterprise $($GME$)$biodegradable packaging products torthe foany tocUsed on producing environmentally friendly.integrated Sustainable DeveloomentGoal $($sp AS part of their sustainability initiative, GME hasoUSiness operations, ensuring that the matorialeue osumpion and Production$)$ into theirprocesses minimise waste. The company operates hn nrndgg ae ecyciable and the productionThe company is currentiy reviewing its cost structure with the goal of improving its profitability whileensuring it continues to meet its environmental and social responsibility objectives. Overheads arein each production cost centre on the basis of machine hours.The following budgeted information is available for the previous period:$1.$Overhead costs already allocated and apportioned to the cost centres:Cost centresOverhead costs allocated and apportionedCost centresSustainability$-$related expensesR$658,000$PP$14.$ Machine hours in cost centre P$1$ are $5,500\mathrm{.}40\%$P$22.$ During the period, Gqeberha Manufacturing Enterprise $($GME$)$ incurred sustainability$-$related expensesamounting to R$550,000.$ These expenses, which have not yet been apportioned, included investmentsaimed at enhancing energy efficiency. such as upgrading to energy$-$efficient equipment and adoptingrenewable energy sources, as well as initiatives to improve supply chain sustainability, including carbonfootorint tracking. Additionally, the expenses covered costs associated with waste management, waterconservation, and sustainable product development, which involved the use of eco$-$friendly materials andobtaining sustainability certifications, such as Fair Trade. The management of the cost centres has agreedto apportion these sustainability$-$related expenses based on the following allocation formula:Percentage of costs of service cost centre $($S$1)$ re$-$apportioned to:R$856,000$P$250\%3.$ Service cost centre overheads are re$-$apportioned to the production cost centres as follows:P$1$S$1$R$280,00040\%(100$ MARKS$]$S$110\%$P$2(20$ Marks$)60\%$cost centre $($S$1),$ which provides supporting services to the production units.entres $($P$1$ and P$2)$ and one service

owing actual information is available for the same period:

Total overhead costs incurred in cost centre P$1($including the re$-$apportionment of cost centre S$1$ costs$)$ amounted to R$858,400.$

$2.$ Machine hours worked at the two production costs centres:

$\backslash$table$[[$Production cost centre P$1,5,140],[$Production cost centre P$2,7,000]]$

Overheads were over$-$absorbed by R$35,500$ in production cost centre P$2.$

REQUIRED:

$1\mathrm{.}1\mathrm{.}1$ For production cost centre P$1,$ calculate the period's:

$1\mathrm{.}1\mathrm{.}1\mathrm{.}1$ Budgeted production overhead absorption rate.

$(5$ Marks$)$

$1\mathrm{.}1\mathrm{.}1\mathrm{.}2$ Over$-$ or under$-$absorption of overhead.

$(2$ Marks$)$

$1\mathrm{.}1\mathrm{.}2$ For production cost centre P$2,$ calculate the period's:

$1\mathrm{.}1\mathrm{.}2\mathrm{.}1$ Budgeted machine hours.

$(4$ Marks$)$

$1\mathrm{.}1\mathrm{.}2\mathrm{.}2$ Actual overhead incurred.

$(2$ Marks$)$

$1\mathrm{.}2$ Using the information provided below, answer the following questions.

INFORMATION

The output levels and production costs recorded at Gqeberha Manufacturing Enterprise $($GME$)$ over the past three quarters are as follows:

$\backslash$table$[[,$Quarter $1,$Quarter $2,$Quarter $3],[$Output $($units$),4,120,4,375,4,050],[$Costs $($R$),837,950,866,300,828,860]]$

REQUIRED:

Using the high$-$low method, estimate the:

$1\mathrm{.}2\mathrm{.}1$ Variable costs per unit, rounding off the answer to two decimal places.

$(2$ Marks$)$

$1\mathrm{.}2\mathrm{.}2$ Total fixed costs per quarter.

$(2$ Marks$)$

$2\mathrm{.}3$ Total costs that would be incurred in a quarter at an output at $4,250$ units.

$(3$ Marks$)$