C$2\mathrm{.}1$

REQUIRED

Study the information provided below and prepare the Income Statement for the year

ended $31$ December $2023$ using the marginal costing method.

$(11$ marks$)$

INFORMATION

Marburg Manufacturers started operations on $02$ January $2023.$ It produced $50000$ units of the only

product that it manufactures and sold $80\%$ of the units produced at a price of R$150$ per unit during

Variable manufacturing costs amounted to $R50$ per unit and variable marketing costs amounted

to R$30$ per unit. Fixed costs totalled R$1200000$ of which $70\%$ was for manufacturing and $30\%$ was for

administration and marketing.

$2\mathrm{.}2$

REQUIRED

Use the information given below to calculate the following variances. In each case also state whether

the variance is favourable or unfavourable.

$2\mathrm{.}2\mathrm{.}1$ Material quantity variance

$(3$ marks$)$

$2\mathrm{.}2\mathrm{.}2$ Total labour variance $($without using the labour rate and efficiency variances$)$

$(3$ marks$)$

$2\mathrm{.}2\mathrm{.}3$ Variable manufacturing overheads expenditure variance

$(3$ marks$)$

INFORMATION

$(3$ marks$)$

INFORMATION