3.1 REQUIRED Use the information provided below to prepare the following for October 2018: 3.1.1 Flexible budget for 2 different activity levels viz. 6 000 and 8 000 units (8 marks) 3.1.2 Performance report. (9 marks) INFORMATION Thor Ltd manufactures a single product. It originally planned to produce and sell 4 000 units during the year but the activity level was 4 500 units. The budgeted and actual income and costs for the year are as follows: Original Actual budget results Volume 4 000 units 4 500 units R R Sales 704 000 828 000 Cost of sales (616 000) (740 100) Direct materials 280 000 332 600 Direct labour 192 000 256 500 Variable overheads 48 000 51 000 Fixed overheads 96 000 100 000 Gross profit 88 000 87 900