QUESTION 2 [25] Decorator (Pty) Ltd manufactures designer lampshades and supplies them to Home tores in the Cape Town area. The company has a manufacturing plant in Milnerton, Cape Town. Decorator (Pty) Ltd uses a standard costing system. The company uses wo types of material for the manufacturing of these lampshades, material Metal 1 and naterial Metal 2. The following information has been obtained pertaining to the year ended 31 December 2021: - The company budgeted to manufacture and sell 6000 units. Only 5000 units were manufactured and sold. - The standard cost per unit for material Metal 1 was R13.60 (0.85kg at R16 per kg ). During the financial year 4000kg of Metal 1 were purchased at a total cost of R70 000 . - The standard cost per unit for material Metal 2 was R12.75 (0.75kg at R17 per kg ). During the financial year 3500kg of Metal 2 were purchased. There was no opening or closing inventory for Metal 2. - The company budgeted to work 60000 labour hours at a rate of R13.50 per hour. 55000 labour hours were worked. The company had an unfavourable labour rate variance of R27 500 . - Variable manufacturing overheads vary with labour hours worked. The budgeted rate was R4.50 per hour. QUESTION 2 [25] Decorator (Pty) Ltd manufactures designer lampshades and supplies them to Home tores in the Cape Town area. The company has a manufacturing plant in Milnerton, Cape Town. Decorator (Pty) Ltd uses a standard costing system. The company uses wo types of material for the manufacturing of these lampshades, material Metal 1 and naterial Metal 2. The following information has been obtained pertaining to the year ended 31 December 2021: - The company budgeted to manufacture and sell 6000 units. Only 5000 units were manufactured and sold. - The standard cost per unit for material Metal 1 was R13.60 (0.85kg at R16 per kg ). During the financial year 4000kg of Metal 1 were purchased at a total cost of R70 000 . - The standard cost per unit for material Metal 2 was R12.75 (0.75kg at R17 per kg ). During the financial year 3500kg of Metal 2 were purchased. There was no opening or closing inventory for Metal 2. - The company budgeted to work 60000 labour hours at a rate of R13.50 per hour. 55000 labour hours were worked. The company had an unfavourable labour rate variance of R27 500 . - Variable manufacturing overheads vary with labour hours worked. The budgeted rate was R4.50 per hour