a$)$ The information below was taken from Pokoo Limited's budgets and standard costs for the first$-$half of the year $2023.$ Pokoo Limited is a manufacturer and retailer of a single product, F$.$

GHS per unit

Selling price $195\mathrm{.}00$

Direct material $55\mathrm{.}00$

Direct labour $39\mathrm{.}00$

Variable production overheads $26\mathrm{.}00$

The fixed production overheads incurred amount to GHS$742,500$ per quarter and are absorbed on a unit basis. The normal level of production is budgeted at $270,000$ units per annum.

Selling and distribution costs are:

Fixed GHS$35,000$ per month

Variable $4\%$ of the sales value

Administration costs are GHS$68,000$ per quarter.

For the first$-$half of $2023,$ the following production and sales trends of product F occurred:

Units

Production $80,000$

Sales $75,000$

There were closing inventories as at $31$st December $2022$ and are given below:

Units GHS

Marginal costing $5,000550,000$

Absorption costing $5,000605,000$

Required:

i$)$ Prepare the absorption costing and marginal costing income statements for the first$-$half of $2023.$

ii$)$ Reconcile the profit in $($i$)$ above

b$)$ Your recently engaged chief executive officer is getting ready to make a presentation on the benefits of maintaining clean budgets and using them as a template for organizational development.

Required:

You have been consulted as the management accountant of your company to identify any benefits of budgets preparation.

QUESTION

Kindly explain how you got the fixed production overhead per unit as $27\mathrm{.}50$