QUESTION 2 (25 MARKS)

Perkasa Health Sdn Bhd manufactures and distributes a product, iSlim. The product has been distributed to all supermarkets and healthcare shops in Malaysia.

Below is the summarised flexible budget for the year 2021.

No. of sachets	Materials	Wages	Overheads
140,000	560,000	1,800,000	2,320,000
160,000	640,000	2,000,000	2,480,000
180,000	720,000	2,200,000	2,640,000

In year 2021, Perkasa Health Sdn Bhd produced 170,000 sachets of iSlim. Given below are the actual costs incurred.

	RM
Materials	1,455,000
Wages	8,665,000
Overheads	2,610,000

In a recent budget announcement made by government, the price of petroleum oil increased by RM0.25 per litre. Thus, the management of Perkasa Health Sdn Bhd expects its operating expenses to also increase. However, these increments have not been taken into consideration when preparing the above budget. It is expected that the price will increase by 10%, 5% and 3% for material, wages and fixed overheads respectively.

Required:

1. Prepare a budgetary control report for the above expenses for 2021.(20 marks)