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

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QUESTION 5 (20 MARKS) CleanScene Shampoo Manufacturer is in thebusiness of producing shampoo for colour treated hair. Shampoo ismanufactured and packaged in 500ml bottles. You received a phonecall from their financial manager, Mr. Clear Head, earlier thismorning. He informed you that their cost accountant, Ms OeLaLa,eloped with her boyfriend to the Caribbean Islands the previousnight. Upon her departure, she failed to complete a performancereport. Mr. Clear Head is not impressed by her impulsive actions,as this leaves him with more work than he can possibly handle. Heasked if you would be willing to set a performance report forCleanScene Shampoo Manufacturer. He provided the followinginformation, relating to the budget for the year ended 29 February2020: 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 theyear ended 29 February 2020 were as follows: Description Actual –35 000 bottles Direct material R315 000 Direct labour R890 000Maintenance R245 000 Electricity cost R480 000 Indirect materialsR165 000 Rental costs R1100 000 Indirect labour wages R545 000Required: 5.1 Prepare a performance report for CleanScene ShampooManufacturer for the year ended 28 February 2020. (16 marks) 5.2Capital budgeting is the analysis and evaluation of investmentprojects that normally produce benefits over a period of years.Discuss the classification of projects in respect of the following:a) Replacement versus expansion (2 marks) b) Independent andmutually exclusive (2 marks)