Question 2 Brown Ltd produced its budget for a recent period as follows: Production units 20 000 22 000 24 000 Material Wages Depreciation Power Transport Maintenance $30 000 25 000 8 000 17 000 16 000 18 000 $33 000 27 500 8 000 18 000 17 500 19 000 $36 000 30 000 8 000 19 000 19 000 20 000 The actual production during the period was 23 500 units. The actual costs were: Materials Wages Depreciation Power Transport Maintenance $34 000 33 000 8 000 17 800 17 600 19 900 Marks Sub- Total total 9 9 12 21 Required 2.1 Prepare a budget for the actual activity level for the period Calculate the variances from the budgeted figures calculated in (2.1) above. Calculate a budgeted rate per unit based on both 20 000 and 24 2.3 000 units, and state why there may be a difference in the two rates 2.2 4 25 Total 25