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Question 1 A manufacturing company produces and sells Product ST. The production cost of the product is made up as follows: RM per unit Direct material 18 Direct labour 4 Variable overheads 3 The fixed production overhead cost per unit is based upon a planned monthly production volume of 11,000 units. In addition to the production costs, the company also incurs the following costs: Fixed administration overhead RM26,000 Variable selling overhead 10% of sales value Fixed selling overhead RM14,000 Fixed production overhead RM99,000 The selling price per unit of Product ST is RM50. The following sales and production volumes are as follows: Month June July Sales (in units) 12,800 11,000 Production (in units) 14,000 10,200 There are no stocks of work in progress or finished goods planned to be on hand at the beginning of June 2018. Required: Prepare Profit Statements based on the plans set out above for June and July of Year 2018 using: (a) (6) The absorption costing method. The marginal costing method. (10 marks) (10 marks) Total. 20