A company produces and sells a single product, the standard unit cost details of which are as follows: Direct material Direct labour Variable overhead 2 kilos x N$4.5 per kilo 3 hours x N$5 per hour 3 hours x NS3 per hour The total fixed overhead is budgeted at N$90,000 per month and is absorbed on a rate per unit basis. The budgeted output per month is 15,000 units. The product has a standard selling price of N$50 per unit. The following activity took place during January and February: February 16,000 units 14,500 units Sales Production January 14,000 units 16,000 units There is an opening stock on 1 January of 3,000 units. Required: (a) Calculate the standard cost and profit for one unit of output. (b) Prepare profit statements for each month using (i) Marginal costing (ii) Absorption costing (5 marks) (10 marks) (10 marks)