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QUESTION 2 ( 2 0 Marks ) 2 . 1 REQUIRED Study the information provided below and prepare the Income Statement for the year ended
QUESTION Marks
REQUIRED
Study the information provided below and prepare the Income Statement for the year
ended December using the marginal costing method. marks
INFORMATION
Marburg Manufacturers started operations on January It produced units of the only
product that it manufactures and sold of the units produced at a price of R per unit during
Variable manufacturing costs amounted to R per unit and variable marketing costs amounted
to R per unit. Fixed costs totalled R of which was for manufacturing and was for
administration and marketing.
REQUIRED
Use the information given below to calculate the following variances. In each case also state whether
the variance is favourable or unfavourable.
Material quantity variance marks
Total labour variance without using the labour rate and efficiency variances marks
Variable manufacturing overheads expenditure variance marks
INFORMATION
Sona Manufacturers uses the standard costing system. The standards are as follows:
Direct material kg @ R per kg
Labour hours at R per hour
Variable manufacturing overheads R per labour hour
Fixed overheads R
Normal production units
Actual information for March :
Direct material used kg at R per kg
Labour hours at R per hour
Variable manufacturing overheads R
Fixed overheads R
Actual production units
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