1 Bernice and Florence Company Limited produces a single product called *Afriyie* which has the following cost data per unit: Selling price Direct material Direct wages Variable factory cost GHS 60.00 15.00 8.00 3.00 Fixed production overheads are budgeted to be GHS 400,000 per annum and the normal output for the year is 200,000 units a year. The fixed selling overhead for the year is budgeted to be GHC 60,000 and the administration fixed costs GHS 140,000 per annum. Variable selling and distribution expenses are calculated to be GHC 3.00 per unit The production and sales in units for Quarters 1 and 2 are as follows: 2 Sales Quarter 1 Quarter 37,000 50,000 42,000 65,000 Production You are required to: a. Calculate the unit costs under both marginal and absorption costing. b. Prepare profit statements for each of the two quarters under marginal costing approach c. Prepare profit statements for each of the two quarters under absorption costing approach d. Explain the difference in profits between the marginal costing and absorption costing calculations you have made in A) and B) for each month