Actual results for the vear ended 31 December 2023 Notes: 1. 80000 units were sold during the year because of an inggressive marketing campaign condacted by Chuta Chula during the year. 2. Total material used was 280 000 retres for the year made up of * 154000 metres of cotton was used during tha year. - 126000 metres of Wool was used during the year. The exchange tate also unexpectedly increased to NS11.50.\$1 for the year due to economic instability in the Southern Alrican region. 3. Buttons wore purchased at NS1.90. The lownr proe was a result of volume discounts granted by the supplier becarise Chuta Chula parchased in Large quantities during the yoar. 4. Labourers who operated the Super Sew and "Master Stichor' (see note 8 beiow) onby manufactured 50 shits per hour during the year 5. Labouters who ogerated the Speed Packer minuthatured according to the atandard of 80 shirts per hout. 6. 0.55 metres of plastic was used for the packaging por shirt. 7. On the 1 st of Janunry 2023, the Stper Sew was sold at its carrying amount, and a new machine narred the Mastar Stitcher was purchased for N55 400000 . Still, assume a write-off period of 8 years apcording to the straight ine method. 8. As a fesult of pressure fron labour unions, the factory manager's salary was increasnd by N5500 per month. Additional Information: - Ignore VAT and other Tax consequences. * There was no opening or closing stock in relation to budgeted or actual figurer. * Assume that the butions have no impact on the midure between cotlon and wool shirts, with buttons and a collar, Thela Chulan) manufactures high-quality long sleeve work few years from sales to high.profitey have otiained a subatantial market share in the past strategy, Chula Chula's reputation businets people, bectuse of their preduct premiurn price of cotton and wool used in the mon for high-quelify shirts originated from their unique mbiture machine named the Super Sew inufacturing of the shirts. Chula Chula owns a revolutionary the material as well as sews the Which ia used to mamufacture the ohirts. The mochine sews another machine which specialy pacs on the shirts, to form the final product. There is also Packer. Springle's yeat specialiy packages every stirt. The machine is called the Speed end is 31 December Chula Chuta created the following standards for the upcoming 2023 financial yoar: Salea: - Market research has reveraled that Chula Chula can expect to sell 60000 shirts calso the normal annual capacity) at N5 400 per shirt. Costs: 1. Material: (Each shirt needs 3 metres of material in total) - Cotton. Cotton can be purchased at NS50 per metre. exchange rate of N\$10-\$1 is accep farmers in Australia at $8.50 per metre (an - The perfect mixture is 70% cotforited in calculating the standard price) - Buttons. Each shirt needs 6 buttons at N52 poor button. 2. Labour: - 5 Labourers are needed to operate the Super Sew. All labourers are needed at the same time to operate the machine. These labourers are paid N\$25 per hour and it takes them 1 hour to manufacture 60 shirts. - 3 Labourers are needed to operate the Speed Packer and they are paid NS18 per hour It takes them 1 hour to manufacture 80 shirts. 3. Variable overhead cost: - Variable overhead cost consists of plastic needed in the packaging of the shirts. Each shint needs 0.5 metre of plastic for packaging. Plastic is purchased at N\$20 per metre, 4. Fixed overhead cost: to the straight line method. - Speed Packer's cost price is NS3 825000 and is depreciated over 9 years according to the straight line method. - The factory manager's salary is N\$18 500 per month. - There are no other budgeted fixed overheads other than those indicated above - Fixed overheads are allocated on the basis of units produced. 5. Other non-manufacturing cost: - Consists of marketing. sates and administrative costs of NS500 000 and is foxed pet year. year