Product Flex spends 10 labour hours in the Machining department and 6 labour hours in the Assembly department QUESTION 2 (20 MARKS) REQUIRED 2.1 Use the information provided below to prepare the Income Statement of Deere Limited for the month ended 31 March 2020 using the 2.1.1 Variable costing method (9 marks) 2.1.2 Absorption costing method. (8 marks) 2.2 Reconcile the profit calculated according to variable costing (in question 2.1.1) with the profit calculated according to absorption costing (in question 2.1.2). (3 marks) INFORMATION The following information was extracted from the accounting records of Deere Limited for the month ended 31 March 2020: Inventory on 01 March 2020 Production NI 50 000 units 45 000 units Sales R120 R300 000 per month R50 per unit Selling price per unit Manufacturing costs: Fixed Variable Marketing costs: Advertising and salaries Sales personnel's commission Administration costs: Office costs including salaries Other office costs R42 000 per month 5% of sales R60 000 per month R7 per unit sold