CleanScene Shampoo Manufacturer is in the business of producingshampoo for colour treated hair. Shampoo is manufactured andpackaged in 500ml bottles.
You received a phone call from their financial manager, Mr.Clear Head, earlier this morning. He informed you that their costaccountant, Ms OeLaLa, eloped with her boyfriend to the CaribbeanIslands the previous night. Upon her departure, she failed tocomplete a performance report. Mr. Clear Head is not impressed byher impulsive actions, as this leaves him with more work than hecan possibly handle. He asked if you would be willing to set aperformance report for CleanScene Shampoo Manufacturer.
He provided the following information, relating to the budgetfor the year ended 29 February 2020:
- Question 5 20 Marks Cleanscene Shampoo Manufacturer Is In The Business Of Producing Shampoo For Colour Treated Hair S 1 (26.79 KiB) Viewed 30 times
- Question 5 20 Marks Cleanscene Shampoo Manufacturer Is In The Business Of Producing Shampoo For Colour Treated Hair S 2 (21.69 KiB) Viewed 30 times
Prepare a performance report for CleanScene Shampoo Manufacturerfor the year ended 28 February 2020. (16 marks)
5.2 Capital budgeting is the analysis and evaluation ofinvestment projects that normally produce benefits over a period ofyears. Discuss the classification of projects in respect of thefollowing:
a) Replacement versus expansion (2 marks)
b) Independent and mutually exclusive (2 marks)
Description Direct material Direct labour Maintenance Electricity cost Indirect materials Rental costs Indirect labour wages Budget-25 000 bottles R250 000 R625 000 R187 500 R370 000 R150 000 R1000 000 R600 000 Budget-40 000 bottles R400 000 R1000 000 R300 000 R520 000 R180 000 R1000 000 R600 000
Actual results for the year ended 29 February 2020 were as follows: Description Actual-35 000 bottles Direct material R315 000 Direct labour R890 000 R245 000 R480 000 R165 000 R1100 000 R545 000 Maintenance Electricity cost Indirect materials Rental costs Indirect labour wages