A company manufactures and sells a single product. Budgeted costs for a period are:

per unit for the period

Direct materials $ 560

Direct labour $ 420

Variable production overhead $ 070

Variable administration overhead $ 050

Fixed production overhead $ 78,000

Fixed administration overhead $ 42,000

If absorption costing is used, the predetermined fixed production overhead absorption rate will be $ 6.50 per unit based on budgeted production of 12,000 units.

During the period 12,800 units of the product were manufactured. 12,300 units were sold at an average price of $ 24 per unit. Actual costs in the period were as budgeted.

REQUIRED

Using marginal costing, prepare profit statement to show the actual results for the period.

[10 marks]