QUESTION 2

(20 Marks)

2.1.1

Cost variance

=

=

=

Comment:

(3 marks)

2.1.2

Cost variance %

=

=

=

Comment:

(3 marks)

2.1.3

Schedule variance

=

=

=

Comment:

(3 marks)

2.1.4

Schedule variance %

=

=

=

Comment:

(3 marks)

2.2.1

Break even quantity	=
	=
	=

(3 marks)

2.2.2

(2 marks)

2.2.3

Sales to achieve target profit	=
	=
	=

(3 marks)

QUESTION 2 Answer the questions from the information provided. 2.1 Use the information provided below to calculate and comment on the following in respect of the project: Cost variance 2.1.1 (3 marks) 2.1.2 Cost variance % (3 marks) 2.1.3 Schedule variance (3 marks) 2.1.4 Schedule variance % (3 marks) INFORMATION The following information is available for a project undertaken by Vista Limited The budget that has been authorised for the scheduled work to be completed R 160 000 The value of work completed expressed in terms of approved budget allocated to that work R197 600 Total costs that were incurred to accomplish the work performed during the given time period R208 000 The total planned value of the project R720 100 to search The following information is available for a project undertaken by Vista Limited: The budget that has been authorised for the scheduled work to be completed R160 000 The value of work completed expressed in terms of approved budget allocated to that work R197 600 Total costs that were incurred to accomplish the work performed during the given time period R208 000 The total planned value of the project R720 100 2.2 2.2.1 Use the information provided below to answer the following questions: Calculate the break-even quantity (3 marks) 2.2.2 Will the project manager be satisfied with the break-even quantity? Explain. (2 marks) 2.2.3 Calculate the sales volume that is required to achieve a profit of R500 000. (3 marks) INFORMATION Makron Manufacturers manufactures and sells one product from Project M and the following are the projections for 2022: The sales volume and sales value are estimated to be 60 000 units and R6 000 000 respectively. Direct materials cost, direct labour cost and variable manufacturing overheads cost are expected to be R2 040 000, R720 000 and R480 000 respectively. Fixed manufacturing and administration costs are estimated at R800 000 and R560 000 respectively. Variable marketing costs are budgeted at R360 000