Question 1 ECD Ltd has managers who are trying to find the two ways of calculating product cost and income statement. these are the variable costing and absorption costing methods Selected data for ECD Ltd are presented below Product X Hour rate for direst labour $ 25 Materials used in production [direct] $ 10,500 Produced units during this period 450 Sales [ in units] 3000 Selling price $16.50 Variable overhead [VOH] $ 3400 Fixed overhead [FOH] $ 3500 Non manufacturing cost Variable selling $ 4000 Fixed selling cost $ 6500 Variable admin cost $2400 Fixed admin cost $1700 Ending inventory $870 Beginning Inventory $1750 REQUIRED 1. Calculate product cost of product X using variable cost. 2. Calculate variable cost of goods for the year 3. Find the variable-costing net income 4. Calculate product cost of product X using absorption cost .. 5. Calculate cost of goods for the year using absorption method 6. Find the net income using absorption method [30 marks] Question 2 Part A Sample question with answer Bo Digital company has the capacity of producing 50,000 units annually. Budgeted operating results for 2020 are given below on the table Sales [40,000 @ $28} Variable costs: Manufacturing (40,000 at $4.60] Selling (40,000 at $0.95) Admin (40,000 at $1.20) Fixed Cost Manufacturing Selling & administrative $64,000 $ 16,000 Show all your workings A customer wants to buy 15,000 units at a price of $20 per unit. All fixed cost will decrease by 10% if the special order is accepted. Variable manufacturing costs would increase by 15% per unit for the special order only REQUIRED Determine whether the company should produce the special order or not Show all workings and use the format provided in review