$63.60 $81.80 $83.40 (2 marks) 3.14 Which of the following costs would not be included as part of the prime cost of a product? Hire charge for specialised machine required for product Rent and rates for factory Material input for product Labour cost of product (2 marks) 3.15 Which costs would not be included as a product cost in marginal costing? Direct materials costs Direct labour costs Variable production costs Fixed production costs (2 marks) 3.16 The following statements relate to absorption and marginal costing. As inventory levels rise marginal costing profit will be higher than absorption costing profi H N Fixed production costs are treated as period costs under marginal costing. Which one of the following is true regarding these statements? Both statements are incorrect Both statements are correct Statement 1 is correct but statement 2 is incorrect Statement 2 is correct but statement 1 is incorrect (2 mar