QUESTION 5 (20 MARKS) CleanScene Shampoo Manufacturer is in the business of producing shampoo for colour treated hair. S

[answerhappygod]

QUESTION 5 (20 MARKS)
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 theirfinancial manager, Mr. Clear Head, earlier this morning. Heinformed you that their cost accountant, Ms OeLaLa, eloped with herboyfriend to the Caribbean Islands the previous night. Upon herdeparture, she failed to complete a performance report. Mr. ClearHead is not impressed by her impulsive actions, as this leaves himwith more work than he can possibly handle. He asked if you wouldbe willing to set a performance report for CleanScene ShampooManufacturer. He provided the following information, relating tothe budget for the year ended 29 February 2020:
Description Budget – 25 000 bottles Budget – 40 000 bottlesDirect material R250 000 R400 000 Direct labour R625 000 R1000 000Maintenance R187 500 R300 000 Electricity cost R370 000 R520 000Indirect materials R150 000 R180 000 Rental costs R1000 000 R1000000 Indirect labour wages R600 000 R600 000
Actual results for the year ended 29 February 2020 were asfollows: Description Actual – 35 000 bottles Direct material R315000 Direct labour R890 000 Maintenance R245 000 Electricity costR480 000 Indirect materials R165 000 Rental costs R1100 000Indirect labour wages R545 000
Required: 5.1 Prepare a performance report for CleanSceneShampoo Manufacturer for the year ended 28 February 2020. (16marks)
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) Independentand mutually exclusive