Products Ltd. has just created a new division to manufacture and sell a fitness tracker. The facility is highly automated and has high monthly fixed costs, as shown in the following schedule of budgeted monthly costs. This schedule was prepared based on an expectation of a monthly production volume of 2,400 units.

Manufacturing costs:

Direct materials per unit $35

Direct manufacturing labour per unit $25

Variable manufacturing overhead per unit $20

Total fixed manufacturing overhead $90,000 per month

Marketing costs:

Variable marketing 8% of sales

Total fixed marketing overhead $66,000 per month

The selling price per unit is $240.

The following activity was recorded: October November Units produced 2,000 2,500 Units sold 1,400 2,800

	October	November
Units Produced	2,000	2,500
Units Sold	1,400	2,800

Create a solution with one excel tab labelled Actual and one tab labelled Standard. All cells on the income statement MUST be linked to the raw data that is shown at the top of each spreadsheet. Your solution needs to have the following items in the following order:

The tab called ACTUAL MUST contain:

1. Raw data for units and all costs for ACTUAL costing AT THE TOP OF THE SPREADSHEET.
2. Variable costing (contribution margin) income statement using ACTUAL costing for October and November.
3. Absorption costing (gross margin) income statement using ACTUAL costing for October and November.

The tab called STANDARD MUST contain:

4. Raw data for units and all costs for STANDARD costing AT THE TOP OF THE SPREADSHEET.
5. Variable costing (contribution margin) income statement using STANDARD costing for October and November.
6. Absorption costing (gross margin) income statement using STANDARD costing for October and November.