Basic. A newly formed company has drawn up the following budgets for its first two accounting periods:

(a) In period 1, the budgeted profit will be:
(}) the same under both absorption costing and marginal costing;
(ji) $750 higher under marginal costing;
(j\\) $750 higher under absorption costing;
(iv) $1400 higher under absorption costing.

(b) In period 2, everything was as budgeted, except for the fixed production overhead, which was $15 700.
The reported profit, using absorption costing in period 2, would be:
(i) $12300 (\i) $12690 (iil) $13140 (iv) $13 840

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Period 1 Period 2 Sales units Production units (equivalent to normal capacity) 9500 10000 10300 10000 The following budgeted information applies to both periods: $ Selling price per unit 6.40 Variable cost per unit 3.60 Fixed production overhead per period 15000