B. Daisy Limited, which manufactures a single product, is considering whether to use marginal or absorption costing to report its budgeted profit in its management accounts. The following information is available: $/unit Direct materials 20 Direct labour 18 38 Selling price 60 Fixed production overheads are budgeted to be $12,000 per month and are absorbed on an activity level of 1,000 units per month. For the month in question, sales are expected to be 900 units although production units will be 1,000 units. Fixed selling costs of $1,000 per month will incurred and the variable selling costs would be $4.00 per unit. There are no opening Inventory. Required: Prepare the budgeted profit and loss account for a month for Daisy Limited using absorption costing. Clearly show the valuation of any Inventory figures. [10 marks] [Total: 20 marks]