QUESTION 4 (20 MARKS, 36 MINUTES) The management of BETA Limited developed the following static 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 salos Materials Labour Factory overhead 2 360 000 (1 732 000) 760 000 632 000 340 000 N$ 1 800 000 (1 290 000) 600 000 450 000 240 000 Gross profit 628 000 510 000 Period costs Selling and distributions Administrative expenses Operating income (348 800) 128 800 220 000 279 200 (320 000) 120 000 200 000 190 000 Page 4 of 7 However, due to an expected increase in demand 40 000 units were sold. Since the sales figures are higher than expected the management needs to analyse all variances and decide whether a future revision of its budgets would be appropriate REQUIRED: Marks Calculate the following: 4.1 (0) Material cost per unit me 3 (10) Labour cost per unit Selling price price per unit. 4.2 Based on the information provided to you, what would be the appropriate 1 recovery rate for factory overhead? Prepare a flexible budgeted statement for comprehensive incomes for 40 000 units using the above information from a static budget for 30 000 units showing 16 clearly columns disclosing information for actual, flexed and variance. Denote the variance with U for unfavourable and F for favourable. 20