QUESTION 5CleanScene Shampoo Manufacturer is in the business of producing shampoo for colour treated hair. Shampoo is manufacturedand packaged in 500ml bottles.You received a phone call from their financial manager, Mr. Clear Head, earlier this morning. He informed you that their costaccountant, Ms OeLaLa, eloped with her boyfriend to the Caribbean Islands the previous night. Upon her departure, she failedto complete a performance report. Mr. Clear Head is not impressed by her impulsive actions, as this leaves him with more workthan he can possibly handle. He asked if you would be willing to set a performance report for CleanScene ShampooManufacturer.He provided the following information, relating to the budget for the year ended 29 February 2020:DescriptionBudget-25 000 bottlesBudget - 40 000 bottlesR250 000R625 000R187 500R370 000R150 000R1000 000R600 000Direct materialDirect labourMaintenanceElectricity costIndirect materialsRental costsIndirect labour wagesActual results for the year ended 29 February 2020 were as follows:DescriptionActual - 35 000 bottlesDirect materialDirect labourMaintenanceElectricity costIndirect materialsRental costsIndirect labour wagesR315 000R890 000R245 000R480 000R165 000R1100 000R545 000R400 000R1000 000R300 000R520 000R180 000R1000 000R600 000Required:5.1 Prepare a performance report for CleanScene Shampoo Manufacturer for the year ended 28 February 2020.a) Replacement versus expansionb) Independent and mutually exclusive5.2 Capital budgeting is the analysis and evaluation of investment projects that normally produce benefits over a period ofyears. Discuss the classification of projects in respect of the following:

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5.1 Prepare a performance report for CleanScene Shampoo Manufacturer for the year ended 28 February 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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