120 MARKS) QUESTION THREE REQUIRED Use the information provided below to prepare the following 3.1. Flexble budget for two different activity levelse. 18 000 and 22 000 units (9) 32. Performance report INFORMATION Lancet Lid manufactures a single product. It originally planned to produce and sell 16 000 units during the year but the actual activity level was 20 000 units. The budgeted and actual income and cost for the year are as follows: Volume Sales (140 Cost of sales 60% Direct Materials 40 42 Direct labour 25 27 Variable overheads 1612 Fixed overheads Gross Profit Original Budget 16 000 units R 2 400 000 440 000) 840 000 400 000 160 000 240 000 960 000 Actual results 20 000 units R 3 000 000 (1 870 000) 840 000 540 000 240 000 250 000 1 130 000 END OF PAPER 150 18000 330000 7 390.000) 880 oo Acturity level 16ooo 2uOOOOO SS DOO 220 000 ooof 57 600) 34000 u Sbucou 2000 89 600 17 600 cos Dine real Dore laut van ouer 270 OBO (1 wuo ca 1620 000 7200 USO WOO 180 000 bUO OCO to C (6000 Duo 20 2-40000 I LHO.000 960 00 1080 to Gross proft but Actual vanenes 0 orginal 16000 frexed an 200co 20 000 Volum DOO 3 280000