FIVE Mundya Limited is a manufacturing company. The following budget information relates to the assembling department for the year to 31st December 2015: Assembling department Total Budgeted Direct material cost Budgeted Direct labour Budgeted total fixed factory overhead 7 K1,200,000 K600,000 K900,000 Budgeted Number of units to be produced and sold 30,000 Budgeted Direct labour hours 60,000 Budgeted Machine hours 100,000 Required: a) Explain the difference between absorption costing and marginal costing marks] [5 b) Calculate the overhead absorption rates for the assembling department using each of the following methods: i. Direct material cost ii. Direct labour cost iii. Prime cost iv. Direct labour hours V. Machine hours. (10 marks) c) If the budgeted selling price per unit is K200.00, prepare the budged statement of comprehensive income for the year ending 31st December 2015 using: i. Marginal costing (5 marks) ii. Absorption costing using direct labour hours absorption rate (5 marks) (Total: 25 marks) CS