8-17 What Comparison of Costing Met information relates to are some of the ing information relates to i hods ILO1.102.103. 1O4 Mucktar Ltd, during the first quarter of 2015 The following Unit sales Sales price per unit. Variable manufacturing cost per unit. Variable selling expense Unit production January February March 2.000 $12 14000 ST2 8.000 S12 5.000 2. 8000 2. 3000 Additional data: nuary 1. there were 2.000 units on hand. rhead cost is $3.00 per unit and is applied to units of product on on volume of 14.000 units the basis of a per month. Costs of goods sold is adjusted for any production d or underapplied fixed manufacturing overhead. plie ucktar Ltd. uses FIFO inventory flow. Work in process inventories are not material and are to be ignored. rixed selling and administrative expenses total $22.000 per month. Required Prepare quarterly income statements using a. Absorption costing b. Variable costing. Explain why, under absorption costing, monthly profits have moved erratically over the uarter and have not moved in correlation with changes in sales volume. Include a recon- liation of absorption and variable costing in your answer 2. Identify the advantages and disadvantages of using variable costing for internal reporting purposes CGA-Canada adapted)