C: ANSWER ALL QUESTIONS IN THIS SECTION Walnut Ltd manufactures wardrobe and the company prepare budget for the 1st year by standard cost as follows: Direct material cost per unit: Direct labour cost per unit: 6 m and 50/ m 12hours and 15/hour Production overheads are esimated by direct labour hours with 4/hour for variable cost and 16/hour for fixed cost. Following budget, Walnut Ltd produce 5000 products and sell 4000 products and selling price per unit is 1,200 in this year. The selling and administrative expense budget is 1,000,000/year and it is totally fixed cost Required: a) Applied marginal costing to prepare income statements (8 marks) b) Applied absorption costing to prepare income statements (8 marks) c) Explain the difference in profit between two reports (4 marks) ---END OF PAPER--- Page 7 of 7 Total: 20 marks