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P3 Calculate costs using appropriate techniques of cost analysis to prepare an income statement using marginal and absorption costs. M2 Accurately apply a range of

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P3 Calculate costs using appropriate techniques of cost analysis to prepare an income statement using marginal and absorption costs. M2 Accurately apply a range of management accounting techniques and produce appropriate financial reporting documents D2 Produce financial reports that accurately apply and interpret data for a range of business activities Table 1: Cost details of Model X10 series Particulars Per unit cost in OMR 520 Selling Price Direct Material 205 Direct Labour 109 Variable Overhead 61 Fixed production overheads for the first quarter were budgeted at RO 22,500. Budgeted Fixed marketing costs were expected to be a bit higher and were planned at RO 6,500 per quarter. Table 2: Budgeted and Actual Sales and Production of Model X10 series Particulars Budgeted Units Actual Units Production 2500 2450 Sales 2500 2400 . Actual overheads incurred for the first quarter of 2020 was RO 22,500. There was no opening inventory in the beginning of first quarter. Revised data: Mobile Apex LLC is however optimistic in achieving its targeted sales before the 2020 yearend. Some of the key measures taken to achieve this target are -- Reducing the selling price by 5%. in the third quarter of 2020 Revised data: Mobile Apex LLC is however optimistic in achieving its targeted sales before the 2020 yearend. Some of the key measures taken to achieve this target are -- Reducing the selling price by 5%. in the third quarter of 2020 2 . Increasing the sales quantity by 10% of actual sales and There will be no change in total fixed cost and variable cost per unit. Revised data: Mobile Apex LLC is however optimistic in achieving its targeted sales before the 2020 yearend. Some of the key measures taken to achieve this target are -- Reducing the selling price by 5%. in the third quarter of 2020 2 . Increasing the sales quantity by 10% of actual sales and . There will be no change in total fixed cost and variable cost per unit. Based on the information provided in the Tables 1, 2 and the Revised data, you are required to produce financial reports for the Management that accurately apply and interpret data for a range of business activities

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