Question 2 (36 minutes, 20 marks) Craftworks Co. began business on January 1, 2019. Production and cost data relating to the months of January and February are as follows: Units produced Units sold (@$26 per unit) JANUARY FEBRUARY 28,000 32,000 27,000 28,000 Production costs: Direct materials (per unit) Direct labour (per unit) Variable MOH (per unit) Fixed MOH (total) $5.00 $6.00 $2.00 $112,000 $5.30 $6.75 $1.95 $112,000 Selling & Administrative costs: Variable S & A (per unit sold) Fixed S & A (total) $5.00 $90,000 $4.75 $95,000 00 4 marks REQUIRED: 1 Calculate the per unit product costs for the months of January and February using (i) variable costing and (ii) absorption costing 2 Prepare an income statement for the month of February under |(i) variable costing and (ii) absorption costing 3 Reconcile the operating income for the month of February under variable costing to that under absorption costing 4 Which costing approach do you favour? Briefly provide two points to support your position 11 marks 3 marks 2 marks