QUESTION $4(25$ Marks$)(30$ Minutes$)$

Victory $($Pty$)$ Ltd $("$Victory$")$ is a producer of premium executive office chairs. Victory

uses a standard costing system.

Standard cost per chair

Direct material: oak wood

Direct material: leather

Direct labour

Variable production overheads $($varying with

hours worked$)$

Variable selling costs

Budgeted selling price per chair

R$30960$

In September $2024,300$ chairs were manufactured and sold.

The financial director also mentioned that this is good for the

performance bonus.

You are a junior management accountant at Victory.

Briefly explain any concerns and ethical issues based on the