Budgeted information for the car charging accessories is as follows:

November $2023$

Selling price per unit K$960$

Variable production overheads per unit K$240$

Fixed production overheads per unit K$300$

NBL uses an overhead absorption rate for fixed production overheads and is based on normal capacity of $1,400$ units per month. The closing inventory for October $2023$ was $100$ units.

The following is the actual performance for month of November $2023.$

Selling price K$960$

Variable production overheads per unit K$240$

Fixed production overheads K$624,000$

Units produced $1,160$

Units sold $1,140$

Required:

$($d$)$ Determine the gross profit for November using absorption costing.

$($e$)$ Prepare a reconciliation statement of the two profit figures from absorption and marginal costing systems. $(6$ marks$)$

$($f$)$ Explain the causes of under$/$over absorbed overhead.

$($g$)$ Differentiate between economic and historical costs

$($h$)$ Explain the terms controllable and uncontrollable costs