*'P8.29A (LO 1, 2, 3, 5) Alta Products Ltd. has just created a new division to m s just created a new division to manufacture and sell DVD players. The facility is highly automated and thus has high monthly fixed costs, as sh is has high monthly fixed costs, as shown in the follow- ing schedule of budgeted monthly costs. This schedule was prepared based monthly costs. This schedule was prepared based on an expected monthly production volume of 2,000 units. $ 30 40 10 70,000 Manufacturing costs Variable costs per unit Direct materials Direct labour Variable overhead Total fixed overhead Selling and administrative costs Variable Fixed During August 2020, the following activity was recorded: Units produced Units sold Selling price per unit 6% of sales $50,000 2,000 1,700 $ 175 Instructions a. Prepare an income statement for the month ended August 31, 2020, under absorption costing. b. Prepare an income statement for the month ended August 31, 2020, under variable costing. C. Reconcile the absorption-costing and variable-costing income figures for the month. d. Prepare an income statement for the month ended August 31, 2020, under throughput costing. e. Reconcile the variable-costing income and throughput-costing income figures for the month. f. What are some of the arguments in favour of using variable costing? What are some of the argu- ments in favour of using absorption costing