QUESTION FOUR

Yellow Incorporated prepared the following budget at the beginning of the financial year:

Budget production and sales in units

$R$

Actual results for the

year:

Actual production and sales in units

$R$

Sales

Direct materials

Direct labour

Variable overheads

Fixed overheads

Actual profit

$10000$

$11000$

Required:

$4\mathrm{.}1$ Prepare the statement of budget versus actual performance.

$4\mathrm{.}2$ Explain the financial results calculated in $4\mathrm{.}1$