Kookaburra Ltd established in 2020. The company produces and sells portable heather. For 2021, Kookaburra budgeted to produce and sell 25 000 units. The company writes off under- or over-allocated overheads to Cost of goods sold. The actual data for 2021 follows:

Units produced - 21,000

Units sold - 18,500

Selling price - 432.00

Variable Cost:

Production cost per unit produced

Direct materials - 33.00

Direct production labour - 23.00

Production overhead - 62.00

Marketing cost per unit sold - 46.00

Fixed costs:

Fixed production costs - 1,5550,000.00

Fixed admin costs - 906,300.00

Fixed marketing - 1,475,000.00

Required (show your workings):

	Prepare a 2021 income statement for Kookaburra using variable costing	10 marks
	Prepare a 2021 income statement for Kookaburra using absorption costing	10 marks
	Explain the differences in operating profit obtained in requirements 1 and 2.	5 marks