Subject : Budgeting and Auditing

(25 Marks) QUESTION 4 4.1 REQUIRED 4.1.1 Use the information provided below to prepare a Performance Report for March 2018. 4.1.2 Comment on your findings from the performance report. (12 marks) (5 marks) INFORMATION Sefika Limited prepared the following budget for March 2018: Sales (84 000 units) Less: Expenses Direct materials Direct labour Overheads Budgeted profit R 672 000 (530 400) 67 200 243 600 219 600 141 600 Direct materials and direct labour costs are variable with sales. The variable portion of overheads is R0.30 per unit. The rest of the overheads are fixed. At the end of March 2018, the company sold 72 000 units. The following actual results were obtained for March 2018: Sales (72 000 units) Less: Expenses Direct materials Direct labour Overheads Budgeted profit R 576 000 (534 240) 72 000 252 000 210 240 41 760