Answer ALL Questions Question 1 (25 Marks) REQUIRED Use the information provided below to prepare the following for June 2020: 1.1. Flexible budget for TWO (2) different activity levels i.e. 20 000 and 25 000 units 1.2. Performance report (9 marks) (11 marks) 1.3. Comment on the following variances: 1.3.1. Sales 1.3.2. Direct Material 1.3.3. Fixed overheads (1 marks) (2 marks) (2 marks) INFORMATION Magna Ltd manufactures a single product. It originally planned to produce and sell 16 000 units during June but the actual activity level was 18 000 units. The budgeted and actual income and cost for June are as follows: Volume Sales Cost of sales Direct Materials Direct labour Variable overheads Fixed overheads Gross Profit Original Budget 16 000 units R 1 920 000 (1 651 200) 800 000 560 000 192 000 99 200 268 800 Actual results 18 000 units R 2 340 000 (2 044 000) 1 008 000 702 000 162 000 172 000 296 000 Question 2 (15 Marks) INFORMATION: Energis Manufacturers produces a product which has the following standard costs: Material A: 4 kilograms at R10 per kilogram Material B: 5 kilograms at R15 per kilogram Direct labour: 6 hours at R10 per hour Fixed overheads: R120 000 Budgeted production: 10 000 units Actual results for November 2019 were as follows: Material A: 50 000 kg at R12 per kilogram Material B: 64 000 kg at R14 per kilogram Direct labour: 66 000 hours at R11 per hour Fixed overheads: R122 000 Production: 12 000 units REQUIRED: Calculate the following: 2.1.1 Material mix variance 2.1.2 Material yield variance 2.1.3 Fixed manufacturing overheads volume capacity variance (6 marks) (6 marks) (3 marks) Question 3 (20 Marks) 3.1 Glasscon (Pty) Ltd, a manufacturer of glass containers, has recently been awarded a major contract which will require the company to employ approximately thirty new hourly paid factory workers. With recruiting procedures completed, the newly appointed personnel must be added to the employee Masterfile. The company's payroll cycle is fully computerised. Describe the controls which should be carried out to ensure that only validly appointed employees are added to the employees masterfile and that all details pertaining to the additions, are accurately and completely recorded. (10 marks) 3.2 Fraud in South Africa is negatively affecting economic growth and development Corporate scandals are costing shareholders millions of rands and fraud in the public sector is adversely affecting service delivery. Discuss FIVE (5) types of fraudulent activities. (10 marks)