REQUIRED:PREPARE THE BUDGETED COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023

QUESTION 1 Eeshoke Chula Chula (Pty)Ltd ("Chula Chula") manufactures high-quality long sleeve work shirts, with buttons and a collar. They have obtained a substantial market share in the past few years from sales to high-profile business people, because of their product premium price strategy. Chula Chula's reputation for high-quality shirts originated from their unique mixture of cotton and wool used in the manufacturing of the shirts. Chula Chula owns a revolutionary machine named the Super Sew, which is used to manufacture the shirts. The machine sews Packer. Springle's year end is 31 December. Chula Chula created the following standards for the upcoming 2023 financial year: Sales: - Market research has revealed that Chula Chula can expect to sell 60000 shirts (also the normal annual capacity) at N$400 per shirt. Costs: 1. Material: (Each shirt needs 3 metres of material in total) - Cotton: Cotton can be purchased at N$50 per metre. - Wool: Wool is imported from sheep farmers in Australia at $8.50 per metre (an exchange rate of N$10:$1 is accepted in calculating the standard price). - The perfect mixture is 70% cotton and 30% wool. - Buttons: Each shirt needs 6 buttons at N\$2 per button. 2. Labour: - 5 Labourers are needed to operate the Super Sew. All labourers are needed at the same time to operate the machine. These labourers are paid N$25 per hour and it takes them 1 hour to manufacture 60 shirts. - 3 Labourers are needed to operate the Speed Packer and they are paid N\$18 per hour. It takes them 1 hour to manufacture 80 shirts. 3. Variable overhead cost: - Variable overhead cost consists of plastic needed in the packaging of the shirts. Each shirt needs 0.5 metre of plastic for packaging. Plastic is purchased at N$20 per metre. 4. Fixed overhead cost: - Super Sew's cost price is N$4600000 and is depreciated over 8 years according to the straight line method. - Speed Packer's cost price is N$3825000 and is depreciated over 9 years according to the straight line method. - The factory manager's salary is N\$18 500 per month. - There are no other budgeted fixed overheads other than those indicated above. - Fixed overheads are allocated on the basis of units produced. 5. Other non-manufacturing cost: - Consists of marketing, sales and administrative costs of N$500000 and is fixed per year