Salea: Costs: 1. Moterial: (Each shirt neods 3 metres of moterie in totad - Butions: Each shint neede 6 butione at nis2 per butlon 2. Labour: same fime to oporate the machine. These lat takes them 1 hour to manufactura 00 shirts. - 3 Labourors are needed to operace the 3p ped Packer and they are paid NSs: per hour it takes thecn it hour per metre 4. Fixed overhead cost: to the straight line method. - Speed Pacher's cost proe ar 133925000 and a depreciated over 9 men according to the straight line method - The factory manager's salary is N $18500 per month - Fined owerheads are allocited on the basit of unitr prodices 5 Other non-manufacturing cost: Actual results for the vear ended 31 December 2023 Notes: 1. 80000 units were sold during the year because of an aggressive marketing carmpalan conducted by Chuta ChLla during the year. 2. Total material used was 280 co0 retres for the year, made up of * 154,000 metres of cotton was used during tha year. - 120000 metres of Wool was used during the yoar The exchange cale also unexpectedly increased to NSt1.50:5i for the year due to economie instability in the Southern Alrican region. 3. Buttons were purchasod at NS1 90. The lowor pnoe was a rasuh of volume dincounts granted by the supplier becaise Cousa Chela purchased in large quantitles diuning the yoar. 4. Labourers who operetod the Super Sew and 'Master Stitcher' (see note 8 befiow) only minufactured so shith per fiour during the yoar 5. Labourers who operated the Speed Paciar minufactured according to the standierd of 80 shirts per hour. 6. 0.55 metrest of plastic was used for the packaging por shirt. 7. On the 191 of January 2023, the Stper Sew was sold at its carrying amount, and a new machine narned the Master stitcher was purchated for Wis5 400000 . Still, siscume a write-off period of B.years according to the straight ine mothod: 8. As a fesult of pressure from labour unions, the factory manager's salary was increand by N5500 per month. Additional information: - Ignore VAT and other Tax consequences. - There was no opening or closing stock in relation to budgeted or actual figures. * Assume that the butions have no mpast on the midure between cotlon and wool \begin{tabular}{|c|c|c|} \hline \multicolumn{2}{|r|}{ REQUIRED } & MARKS \\ \hline (a) & \begin{tabular}{l} Prepare the budgeted Statement of Comprehensive income for the year \\ ended 31 December 2023 . \end{tabular} & (10) \\ \hline (b) & \begin{tabular}{l} Calculale all possible variances. \\ NB: YOU ARE NOT REQUIRED TO CALCULATE: \\ - Efficlency and Capacity variances when calculating Fixed \\ Overhead Cost variances. \\ - Any mix and yield variances \end{tabular} & (32) \\ \hline (c) & Give possible reasons for the material and labour variances. & (6) \\ \hline (d) & Explain the difference between budgets and standard costing. & (2) \\ \hline & Show all your workings! & \\ \hline & TOTAL MARKS & (50) \\ \hline \end{tabular}