QUESTION 2 (30 MARKS)

REQUIRED

Use the information provided below to prepare the following for March 2020:

2.1. Flexible budget for two different activity levels i.e. 18 000 and 25 000 units (9)

2.2. Performance report (11)

2.3. Comment on the following variances:

2.3.1. Sales (1)

2.3.2. Direct Material (2)

2.3.3. Fixed overheads (2)