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):

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