2 The following data have been extracted from the budgets and standard costs of FAA limited a company which manufactures and sells a single product, for the 1" quarter of 2021. GH per unit Selling price Directed material Direct labour Variable production overhead 60 15 10 5 Fixed production overhead costs are budgeted at GH# 700,000 per annum. Normal production levels are thought to be 350,000 units per annum. Selling and distribution expenses are: MISCA GENERAL EXPECTATION Fixed Variable GH#20,000 per month 5% of the sales value Administration cost are GH200,000 per annum. The following trends of sales and production are expected during the first quarter of 2021 Production Sales Units 80,000 70,000 There were no opening inventories. REQUIRED: a) Prepare the absorption costing and marginal costing income statements for 1" quarter, 2021. (10 marks) b) Reconcile the profits in (a) above. (2 marks) c) State two (2) differences between absorption costing and marginal costing approaches. (2 marks) d) What is the meaning of stack under limiting factor analysis? (1 mark) [Total-15 marks]