QUESTION 1 RMKA Sdn Bhd is a manufacturing company which produces and sells variety of laundry products. One of the highly demanded products is special softener called Super Soft which is sold in 1,000 ml bottle at a price of RM40.00 per bottle. The budgeted production and sales for Super Soft is 20,000 bottles per month. Encik Kamarudin, the company's cost accountant, has provided the following estimated costs per bottle of Super Soft. RM Direct material 01 8.00 Direct material 02 4.00 Direct labour (RM8.00 per hour) 12.00 Production overhead 10.00 Total production costs 34.00 Additional information: Variable production overhead is absorbed based on RM4.00 per direct labour hour. ii. Monthly budgeted selling expenses and administrative expenses is RM20,000 and RM15,000 respectively. iii. 40% of the selling expenses and 100% of administrative expenses are fixed in nature. iv. For the month of July 2022, the company has produced 18,000 bottles of Super Soft and 90% of them have been sold. V. Inventory record shows that there were 500 bottles of Super Soft at the end of June 2022. vi. The monthly fixed selling expenses and administrative expenses incurred are same as the budgeted amount. Required: a. Prepare a Statement of Profit or Loss for the month of July 2022 by using Marginal costing approach and Absorption costing approach (10 marks) b. Reconcile the difference in profit between the two approaches in (a) above. (2 marks) C. Discuss the effect on the profit calculated using the two approaches under each of the following situations: All 18,000 bottles of Super Soft produced were sold Number of bottles of Super Soft sold were less than 18,000 bottles iji. Number of bottles of Super Soft sold were more than 18,000 bottles. (3 marks) (Total: 15 marks)