Assignment 1 [Variable costing] Selected data for Babar Ltd of past year of operations are presented below Production [in units Sales [in units] Selling price DLHours Manufacturing cost Raw Materials [S] Salaries of direct labour[$] Actual machine hours worked Hourly rate for DLH Non manufacturing cost Variable selling Fixed selling cost Product X 25000 18000 $4.00 800 17000 24000 8000 $30.00 18000 15000 Estimated fixed cost = $28000 Budgeted Machine hours = 8400 Company uses absorption cost based on machine hours. For calculating product cost using variable costing, assume 40% of the overhead applied to be variable overhead [VOH]and the rest to be fixed overhead [FOH] REQUIRED 1. Calculate product cost of product X using variable cost. 2. Calculate product cost of product X using absorption cost.. 3. Calculate variable cost of goods for the year 4. Find the variable-costing net income 5. Calculate cost of goods for the year using absorption method 6. Find the net income using absorption method