Practice Question for Test Selected data of Lotus Ltd of past year of operations are presented be Product A 5000 Production in units 3000 Sales in units Selling price $4.00 Product cost: Raw Materials [$] 7000 Salaries of direct labour[$] 4000 Variable overhead 3000 Fixed overhead 4000 Non manufacturing cost Variable selling 2500 Fixed selling cost 5000 Estimated fixed cost-$ 8000 Budgeted Machine hours = 800 hours Company uses absorption cost based on machine hours I REQUIRED 1. Calculate product cost of product X using variable cost. 2. Calculate product cost of product X using absorption cost 3. Calculate variable cost of goods for the year 4. Find the variable-costing net income 5. Calculate cost of goods for the year using absorption method 6. Find the net income using absorption method