4 TASK 1 Sloan Limited currently produces three main product lines (see below). The company uses an absorption costing gm and the following information relates to the current year, 2012. Budgeted Sales (Units) 10,000 4,000 6,000 Winter Rain Product Line Suits Coats Coats Total 000s 000s 000s 000s Sales Revenue 300 200 1 50 650 Direct Materials 100 40 60 200 Direct Labour 50 70 30 200 Production Overheads 75 30 35 140 Non-prod uction Overheads 15 10 5 30 Total costs 240 1 50 1 80 570 ProfitgLoss) 60 50 -30 80 Additional Information The total production overhead of 140,000 consists of 40,000 variable costs and 100,000 fixed costs. Variable production overheads are absorbed g the basis of 20% of the direct labour costs. The non-production overhead of 30,000 is entirely fixed costs. Assume there is no change in inventory levels