Shesha Nami $($Pty$)$ Ltd $($SN$)$ is a well$-$eslablished electronic bicycle manufacturing company operating from its plant and distribution centre in Middelburg $($Mpumalanga$),$ South Africa. The company has a male$-$dominated management team and is well known for its quality products and commitment to sustainability.

SN makes two types of electrical bikes, namely the Electric mountain bike $($E$-$MTB$)$ and the Electric city bike $($E$-$CB$).$ The E$-$MTB has a bigger frame and tyres than the E$-$CB to provide stability and control for more rugged terrains. Both bikes make use of an electric motor, powered by a battery, to assist with propulsion.

SN makes use of an absorption costing systom and all its inventory items are valued using the first$-$In$-$first$-$out $($FIFO$)$ method. SN has a $31$ December financial year end.

SN$\text{'}$s STANDARD AND BUDGETED INFORMATION FOR THE $2023$ FINANCIAL YEAR

$1\mathrm{.}1.$ Inventory and manufacturing

The company had no budgeted opening and closing inventory of any type.

SN budgeted to manufacture the electronic bikes in direct proportion to its standard sales mix. The budgeted manufacturing levels for the $2023$ financial year were equal to the company's normal manufacturing capacity.

$1\mathrm{.}2.$ Sales

SN budgeted to sell $24000$ E$-$MTB and $16000E-CB$ units. One bike is equal to one unit. The budget selling price per unit for E$-$MTB and E$-$CB was R$28000$ and R$26000$ respectively.

$1\mathrm{.}3.$ Variable and Fixed costs

The E$-$bike manufacturing starts with the frame and suspension made from Aluminium. The frame and suspension are produced according to the bike's design and specification using various cutting and bonding machinery.

Once the frame and suspension are ready, various components $($wheels$,$ brakes, drivetrain & other components$)$ are attached to the frame. The key components that differentiate E$-$bikes from traditional blicycles are the electric motor and lithium$-$lon battery which are integrated into the bike's frame.

$SN$ employs factory workers for the manufacturing and assembly process. The standard is to allow $8\%$ idle time for these direct labourers.

Shesha Nami $($Pty$)$ Lid $($SN$)$ is a well$-$established electronic bicyde manulacturing company operating from its plant and distribution centre in Middelburg $($Mpumalanga$),$ South Africa. The company has a male$-$dominaled management team and is well known for its quality products. and commitment to sustainability.

SN makes two types of electrical bikes, namely the Electric mountain bike $($E$-$MTB$)$ and the Electric city bike $($E$-$CB$).$ The E$-$MTB has a bigger frame and tyres than the E$-$CB to provide stability and control for more rugged terrains. Both bives make use of an electric motor, powered by a battery, to assist with propulsion.

SN makes use of an absorption costing system and al its inwentory items are valued using the first$-$In$-$first$-$out $($FIFO$)$ method. SN has a $31$ December financial year end.

SN$\text{'}$s STANDARD AND BUDGETED INFORMATION FOR THE $2023$ FINANCIAL. YEAR.

$1\mathrm{.}1.$ Inventory and manutacturing

The compary had no budgeled opening and closing imventary of any type.

SN budgeted to manufacture the electronic bikes in direct proportian to its standard sales mix. The budgeted manufacturing levels for the $2023$ financial year were equal to the company's normal manufacturing capacity.

$1\mathrm{.}2.$ Sales

SN budgeted to sell $24000$ E$-$MTB and $16000$ E$-$C$8$ units. One bike is equal to one unit. The budget seling price: per unit for E$-$MTB and E$.$CB was R$28000$ and R$26000$ respectively.

$1\mathrm{.}3.$ Varlable and Fixad costs

The E$-$bike manufacturing starts with the frame and suspension made from Aluminium. The frame and suspension are produced according to the bike's design and specification using various cutting and bonsing machinery.

Once the frame and suspension are ready, various components $($wheals$,$ brakes, drivetrain & ather componenss$)$ are attached to the frame. The key camponents that diterentiate E$-$bikes from tradional bicycies are the electrio moter and intium$-$ian battery which are integrated into the bike's frame.

SN employs factory workers for the manufacturing and assembly process. The standard is to allow bs ide lime for these direct labourers.

The standard variable cost requirements for one E$-$MTB and one E$-$CB unit are:

$\backslash$table$[[$Requirements per unit,,$],[$INPUTS$,$E$-$MTB$,$E$-$CB$,$Budgeted price$],[$Aluminium$,1,8$ kilogram,$1,5$ kilogram,R $42000$ per ton$],[$Electric motor,$1$ electric motor,$1$ electric motor,R $3800$ per motor$],[$Lithium$-$ion Battery,$1$ battery,$1$ battery,R $6000$ per battery$],[$Various components,$\backslash$table$[[1,1$ component$],[$sets$]],1$ component set,R $12500$ per set$],[$Direct labour,$\backslash$table$[[90$ clock minutes$],[$per bike$]],\backslash$table$[[90$ clock minutes$],[$per bike$]],$R $105$ per clock hour$],[\backslash$table$[[$Variable manufacturing$],[$overheads $($VMO$)]],\backslash$table$[[45$ machine$],[$minutes$]],\backslash$table$[[45$ machine$],[$minutes$]],$R$13$ per machine hour$],[$Selling and distribution,Refer to $1\mathrm{.}4,$Refer to $1\mathrm{.}4,$R$50$ per bike$]]$

$1\mathrm{.}3\mathrm{.}2.$ Fixed costs

Fixed manufacturing overhead costs $($FMO$)$ are allocated ba