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Question 1 A new company provides following information relates to its first month transation. Cost and selling price details for product X: RM per unit Direct materials 5.00 Direct labour 8.50 Variable overhead 2.50 Fixed overhead absorption rate 5.00 21.00 Profit 10.00 Selling price 31.00 Budgeted production for the month was 5,000 units although the company managed to produce 5,800 units, selling 5,200 of them and incurring fixed overhead costs same as budgeted at RM25,000. (a) Calculate the profit using absorption costing (12 marks) (b) Calculate the profit using marginal costing (10 marks) (c) Reconcile profit difference in (a) and (b). (6 marks) (d) State TWO (2) advantages of absorption costing and marginal costing respectively. (8 marks)