3. A product sells at Rs. 3 per unit. The company uses a first-in-out actual costing system. A new fixed manufacturing overhead allocation rate is computed each year by dividing the actual fixed manufacturing overhead cost by the actual production. The following data is available for the first two years: Year 1 Year 2 Sales (Units) 1500 1800 Production (Units) 2100 1500 Cost: (Rs.) (Rs.) Variable Manufacturing 1050 750 Fixed Manufacturing 1050 1050 Variable Marketing and Administration 1500 1800 Fixed Marketing and Administration 600 600 Prepare Income Statement for each year based on: a. Absorption Costing (5 Marks) b. Variable Costing