Use the information provided below to prepare the following for June 2020:

1. Flexible budget for TWO (2) different activity levels i.e. 20 000 and 25 000 units (9)

2. Performance report (11)

INFORMATION Magna Ltd manufactures a single product. It originally planned to produce and sell 16 000 units during the year but the actual activity level was 18 000 units. The budgeted and actual income and cost for the year are as follows: Volume Sales Cost of sales Direct Materials Direct labour Variable overheads Fixed overheads Gross Profit Original Budget 16 000 units R 1 920 000 (1 651 200) 800 000 560 000 192 000 99 200 268 800 Actual results 18 000 units R 2 340 000 (2 044 000) 1 008 000 702 000 162 00 172 000 296 000