- Description Burhan Limited sells a single product at a price of Rs.2,800 per unit. Variable manufacturing costs of the product are Rs. 1,280 per unit. Fixed manufacturing overheads, which are absorbed into the cost of production at a unit rate (based on normal activity of 20,000 units per period), are Rs. 18,400,000 per period. Any over- or under-absorbed fixed manufacturing overhead balances are transferred to the profit and loss account at the end of each period, in order to establish the manufacturing profit. Sales and production (in units) for two periods are as follows: Period 1 Period 2 Sales 15,000 22,00LAP Production 18,000 21,000 The manufacturing profit in Period 1 was reported as RS. 7, 160,000. The change in manufacturing profit between Periods 1 and 2, where absorption costing is used in each period is: ORs. 6,960,000