QUESTION 3 3.1 REQUIRED Use the information provided below to answer the following questions: Calculate the number of units that must be sold to break even. Calculate the number of units that must be sold to achieve a net profit of R675 000. INFORMATION The following information was extracted from the budget of a project of Manor Limited for the year ended 31 December 2020. Only one product is produced and sold from this project. Estimated sales for the financial year Selling price per unit 6 000 units R1 800 Direct materials cost per unit R630 Direct labour cost per unit R315 Variable manufacturing overheads cost per unit R180 Fixed manufacturing overhead costs R540 000 Selling and administrative costs: Fixed Variable 3.2 REQUIRED R270 000 7.5% of sales Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable. Direct material price variance Direct material usage variance Direct labour rate variance Direct labour efficiency variance Variable overheads expenditure variance Variable overheads efficiency variance INFORMATION Ryobi Ltd uses the standard costing system at one of its projects. The standards and actual information for October 2019 for the only product that it manufactures are as follows: Standards Direct material Direct labour Variable overheads Normal production 5kg @ R8 per kg 2 hours @ R42 per hour R6 per labour hour 14 000 units per month Actual information for October 2019: Direct material used Direct labour Variable overheads Production 59 000kg at a total cost of R501 500 25 000 hours @ R40 per hour R175 000 12 000 units manufactured Guidelines: All answers must be typed out and workings must be showing.