a$.$ Acompany budgeted ot make and sel $2,000$ units of its only product, for which the standard marginal $($variable$)$ cost is:GH$16?$Direct material cost: $4$kilos at GH$$3\mathrm{.}50$ per kilo$14\mathrm{.}00$Direct labour cost: $3$ hours at GH$6\mathrm{.}00$ per hour$18\mathrm{.}0032\mathrm{.}00$The standard sales price si GH$47\mathrm{.}50$ per unit, and the budgeted fixed costs are GH$30,000.$ The actual results of $2,400$ units produced and sold were as follows:GHeGH$$Sales revenue$115,000$ Direct material cost $(12,300$ kilos at GH$3\mathrm{.}00$ per kilo$)36,900$Direct labour cost $(7,500$ hours ta GH$6\mathrm{.}10$ per hour$)45,750$Total variable costs$(82,650)$Actual contribution$32,350$Actual fixed costs$(31,000)$ Actual net profit$1,350$You are required to:$.$i Prepare an operating statement that reconciles the budgeted profit with the actual profit, showing clearly and ni detail the various costs and revenue variances for the period.$(12$ marks$).$i State one possible reason for each cost variance determined ni i$)$ above.$(4$ mar

b$.20\%$ of a company's sales are made to cash customers. The records of the company show that the credit customers settle their bills as follows:

Paid in the month following the sale $-60\%$

Paid two months after the sale $-38\%$

Credit customers paying in the month following the sale receive a $5\%$ discount. The budgeted

Uncollectible debts $-2\%$

$\backslash$table$[[$January$,$February$],[$GH& $21,000,$GH& $30,000]]$

sales for the forthcoming period are as follows:

You are required to:

i$.$ Calculate the amount to be shown as receipts from sales in the cash budget for March.

$(5$ marks$)$

ii$.$ Define a cash budget and explain why cash budgeting is essential in organisations.

$(5$ marks$)$

Total: $20$ marks

Question $2$

a$.$ A company budgeted to make and sell $2,000$ units of its only product, for which the standard marginal $($variable$)$ cost is:

Direct material cost: $4$ kilos at GH $!in3\mathrm{.}50$ per kilo

Direct labour cost: $3$ hours at GH$6\mathrm{.}00$ per hour

The standard sales price is GH& $47\mathrm{.}50$ per unit, and the budgeted fixed costs are GH&$30,000.$ The actual results of $2,400$ units produced and sold were as follows:

Sales revenue

Direct material cost $(12,300$ kilos at GH $3\mathrm{.}00$ per kilo$)$

Direct labour cost $(7,500$ hours at GH$6\mathrm{.}10$ per hour$)$

Total variable costs

Actual contribution

Actual fixed costs

Actual net profit

You are required to:

i$.$ Prepare an operating statement that reconciles the budgeted profit with the actual profit, showing clearly and in detail the various costs and revenue variances for the period.

$(12$ marks$)$

ii$.$ State one possible reason for each cost variance determined in $($i$)$ above. $(4$ marks$)$

$]$

$14\mathrm{.}00$

$[18\mathrm{.}00$

$]$

$[45,750]$

$32,350$

$(31,000)$

$[1,350$