4 Durin plc is a manufacturer specializing in the production of a technological component called D-tech. The the following information about the production costs of D-tech is given below. Sales Volume (units) Production Volume (units) Sales Price ( per unit) 2021 2022 30,000 28,000 40,000 25,000 30 33 Direct Materials Cost ( per unit) 8 9.5 Direct Labour Cost ( per unit) 6 5.5 Variable Manufacturing Overhead ( per unit) 3 3.5 Variable Selling and Administrative Expenses ( per unit) 6 7.5 Fixed Selling and Administrative Expenses () 35,000 41,000 Fixed Manufacturing Overhead () 110,000 95,000 Assume that there is no opening stock at the beginning of 2021. Required a) Prepare Marginal Costing profit statements for Durin plc. for the year ending 2021 and 2022 (12 marks) b) The Fixed Overhead Absorption Rate used for absorbing the Fixed Manufacturing Overhead is 5 per unit in 2021 and 6 per unit in 2022. Calculate the profit or loss for Durin plc using Absorption Costing for the year ending 2021 and 2022