Management accounting 1B.clear and full answers best results. please typed answers .

Question 2 (29 marks) Satellite Communications Ltd ("SCom") is a Namibian based company that manufactures a component required in the telecommunications industry. The company prepares budgets on a quarterly basis. The budgeted sales for the first three months of 2021 are as follows: Sales Month 1 28 000 units Month 2 32 000 units Month 3 22 000 units It is company policy to keep a closing inventory equivalent to 20% of the following month's sales. The sales units of Month 1 and Month 4 are always the same in any quarter. The forecast sales for Month 4 are 24 000 units. Direct labour required for one unit is budgeted as follows: Molding Department 3 hours at N$8 per hour Polishing Department 2 hours at N$8 per hour The Molding department employs a permanent workforce of 400 workers while the Polishing department employs 280 permanent workers. When demand has increased and additional manpower is needed, it can easily be hired from the local market. The normal working day has 8 hours and all employees work from Monday to Friday. Each working month has four (4) weeks. Page 15 of 16 Question 3 (27 marks) Windhoek Beauty Products (" WBP") applies a standard marginal costing system to produce a cosmetic that they sell in the Namibian market. The details of their production for the month of August 2020 are as follows: Budget Actual Sales/production in units 6 000 5 500 Total sales revenue N$600 000 N$660 000 Total materials 24 000kgs 24 750kgs Material cost N$240 000 N$222 750 Total labour hours 18 000 hours 15 125 hours Total labour cost N$216 000 N$211 750 Fixed production overheads N$100 000 N$110 000 The company applies an efficient just in time technique and so does not keep inventories of any kind. WBP's strategy is to ensure that they retain a motivated staff compliment that would always go an extra mile to ensure the company's profitability. Mark 2 18 Requirement 3.1 Prepare a standard cost card for one unit of the cosmetic. Calculate all the possible variances and present them in a statement that 3.2 reconciles budgeted contribution to the actual. Advise WBP on the best standards to use in order to achieve their strategic 3.3 objectives. Your answer should justify why other standards are not appropriate. 3.4 Some people say standard costing is no longer relevant in the current business environment. List three advantages of using standard costing. N.B. Where applicable show all workings. Total 4 3 27 Total Assignment 2: 94 marks