PMA0064 ESSENTIALS OF MANAGEMENT ACCOUNTING IS OCTOBER 2020 Question 4 Harizona firm manufactures and sells a single product, product H. The information about product H is as follow: RM Selling price 30 Variable manufacturing cost 8 Variable selling and administration cost 4 Details for the month of May and June are as follows. May June Production of H 750 units 1,000 units Sales of H 600 units 1,150 units Fixed manufacturing overhead RM4,500 RM4,500 Fixed non-manufacturing cost RM3,750 RM3,750 The normal production of product H is 900 units. a) Calculate production cost per unit using Absorption method and Marginal costing method (3 marks) b) Prepare for May and June the income statements based on Absorption costing approach. (12 marks) c) Prepare for May and June the income statements based on Marginal costing approach. (10 marks) (Total 25 marks)