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Question 3 Beastboy Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price RM120 Units

Question 3 Beastboy Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price RM120 Units in beginning inventory 500 Units produced 13,000 Units sold 12,800 Variable costs per unit: Direct materials RM35 Direct labor RM15 Variable manufacturing overhead RM12 Variable selling and administrative RM6 Fixed costs: Fixed manufacturing overhead RM70,000 Fixed selling and administrative RM140,000 The company produces the same number of units every month, although the sales in units vary from month to month. The companys variable costs per unit and total fixed costs have been constant from month to month. Required: a) Calculate the cost of one unit of product under absorption costing. (2 marks) b) Calculate the cost of one unit of product under variable costing. (2 marks) c) Calculate Beastboys next year operating income under absorption costing. (6 marks) d) Calculate Beastboys next year operating income under variable costing. (5 marks) (To

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