QUESTION 4 120 MARKS 36 MINUTES) The management of BETA Limited developed the following statio budget for one of its flagship product and estimated that 30.000 units would be sold during the month of August 2021 Actual Static budget Units sold 40 000 30 000 Revenue Cost of sales Materiais Labour Factory overhead 2 360 000 (1732 000) 780 000 132 000 340 000 NS 1 800 000 (1 200 000) 300 000 450 000 240 000 621 000 510 000 Gross profit Porlod costs Selling and distribution Administrative expenses Operating income (348 800) 128 800 220 000 279 200 (320 000) 120 000 200 000 190 000 3 However, due to an expected increase in demand 40 000 units were sold Since the salon figures are higher than expected the management needs to analyse all variances and decide whother a future revision of its budgets would be appropriate REQUIRED: Marks Calculate the following: (0) Material cost per unit (11) Labour cost per unit (1) Selling price price per unit. Based on the information provided to you, what would be the appropriate 42 recovery rate for factory overhead? Prepare a flexible budgeled statement for comprehensive incomes for 40 000 units using the above information from a static budget for 30 000 units showing 4.3 16 clearly columns disclosing information for actual, flexed and variance Denate the variance with U for unfavourable and F for favourable 20 1