[60 MARKS] SECTION B Answer ALL questions in this section. QUESTION 3 (20 Marks) IDWALA Chemicals Corporation John Mashala, the production manager of IDWALA Chemicals, in South Coast, Durban is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is production data prepared by Jason Naidoo, his operations analyst. The report which he gave him this morning showed the following table: 2019 7000 1000 Year 2018 Production units 5000 Raw materials (barrels of 800 petroleum by products Labour hours 24 000 Capital costs R500 000 30 000 R700 000 John Mashala knew that his labour cost per hour had increased from an average of R15 per hour to an average of R20 per hour, primarily due to a move by management to become more competitive with a new company that had just opened a plant in the area. He also knew that his average cost per barrel of raw material had increased from R350 to R400. He was concerned about the accounting procedures that increased his capital cost from R500 000 to R700 000, but earlier discussions with his boss suggested that there was nothing that could be done about that allocation. John Mashala wondered if his productivity had increased at all. He called Jason into the office and conveyed the above information to him. Answer the following questions that are related to the case above: 3.1 Prepare the productivity part of the report for Mr Martins. He probably expects some analysis of productivity inputs for all factors, as well as multifactor analysis for both years with the change in productivity (increase or decrease) and the amount noted. (16 marks) 3.2 Management's expectation for departments such as Mr Martin's is an annual productivity increase of 5%. With the aid of a suitable calculation verify if Mr Mashala's goal was achieved. (4 marks)