7:39 Oy DISCUSSION QUESTION 2 (CLO 3) Microlamp Inc. produces desk lamps at its factory. The following relates to the production of the desk lamps for the period ending December 31, 2021. Budgeted Actual Production (units) 75,000 80,000 Sales (units) 72,500 77,500 Fixed production cost $750,000 $781,250 Fixed selling overhead $562,500 $562,500 The fixed production overhead was absorbed at a pre-determined rate per unit produced. Each desk lamp was sold for $450. At the beginning of January 2021, there was opening stock of 4,375 units valued at $262,500; this includes fixed production overhead of $43,750. Required: (a) Prepare a marginal costing income statement for the company at December 31, 2021 (b) Prepare absorption costing income statement for the company at December 31, 2021 (c) Reconcile the income under both statements (d) Calculate the break-even points in units and sales value. (10 marks) Separate groups: Robinson Vassell, Maureen - Section V Add a new discussion topic