Benedict Company is a manufacturer of small industrial tools with annual sales of approximately R2 million. Sales growth has been steady during the year, and there is no evidence of cyclical demand. Production has increased gradually during the year and has been evenly distributed throughout each month. The company has a sequential processing system. The four manufacturing departments, casting, machining, finishing and packaging, are all located in the same building. Fixed overheads are assigned using a plant-wide rate. Benedict has always been able to compete with other manufacturers of small tools. However, its market has expanded only in response to product innovation. Thus, research and development are very important and have helped Benedict to expand as well as maintain demand. Maria Nkomo, the newly-appointed costing clerk, has drawn up the performance report for the machining department. Jordan Banks, the management accountant, told her that this report was incorrect. After explaining to her, he requested her to draw up a revised report. Benedict Manufacturing Company Machining department performance report for the month ending May 31 20X6 Flexible Budget Actual Variance Volume in units 3 000 4 000 3 185 185 F Direct materials R 24 000 R 32 000 R 25 843 R 1 843 U Direct labour R 27 750 R 37 000 R 29 802 R 2 052 U Production overheads R 34 230 R 45 330 R 36 362 R 2 132 U Indirect labour R 3 900 R 5 000 R 3 934 R 34 U Depreciation R 1 500 R 1 500 R 1 500 R 0 No variance Taxes R 300 R 300 R 300 R 0 No variance Insurance R 240 R 240 R 285 R 45 U Corporate costs Research and Development R 3 200 R 4 000 R 3 728 R 528 U Selling and administrative R 4 300 R 5 500 R 4 075 -R 225 F Total costs R 99 420 R 130 870 R 105 829 R 6 409 U Required: Show the revised performance report drawn up by Maria Nkomo. Note: Round off unit costs to two decimal places and totals to the nearest rand