QUESTION 1 Lucky Sdn Bhd intends to manufacture and supply new product in year 2021 for which the following information is provided: Per unit RM15.00 Selling price Direct materials: Material A Material B RM1.50 per unit RM1.00 per unit Direct labour Production overhead RM0.90 per unit RM5.00 per unit Additional Information: i. Included in the production overhead cost per unit is the fixed production overhead. of RM 3.00 per unit. ii. Variable selling and distribution overhead is 10% of sales value. iii. The company activity level for the first two months of year 2021 is expected to be: Production units Sales units January 10,000 6,000 February 10,000 10,000 Required: a. Prepare the budgeted profit statement for the month of January and February 2020 using the Variable and Absorption Costing method. b. Reconcile the net income/loss under Absorption and Variable Costing method