Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows:

The budgeted level of production used to calculate the predetermined fixed manufacturing cost per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in production volume is charged to the cost of goods sold of the month it occurs. Assume there is no other variances related to fixed manufacturing.

REQUIRED: (a) Prepare income statements for Haitek in March, April and May 2021 under (i) variable costing (ii) absorption costing (b) Explain the difference in operating income for March, April and May under variable costing and absorption costing.

Month Sales March April May Beginning Production Inventory 0 3,000 600 2,600 600 3,300 2,400 2,600 3,450 Other related actual data : Mpanufacturing cost per unit produced Marketing cost per unit sold.. Fixed Manufacturing costs per month Fixed Operating & marketing costs per month Selling price per unit.. RM550 RM200 RM320,000 RM95,000 RM1,700