2 2. (a) Aqualead Ltd produces orange juice at its factory. The following information relates to the production of orange juice for the period ending 31 March 2011. Production Sales (Units) (Units) Budget Actual 60 000 64 000 58 000 62 000 Fixed Selling Overhead Variable Production Cost $ 3 000 000 3 200 000 Fixed Production Overhead $ 600 000 625 000 Budget Actual 450 000 450 000 The fixed production overhead was absorbed at a predetermined rate per unit produced. One bottle of orange juice was sold for $95. At the beginning of April 2010, there was an opening inventory of 3 500 units valued at $210 000; this includes fixed production overhead of $35 000. (1) (11) Prepare a marginal costing income statement for the company. [7 marks) Prepare an absorption costing income statement for the company. [7 marks] Reconcile the difference between the net operating Income computed under marginal costing and that computed under absorption costing [2 marks] (111)