Question 3 The following information relates to Successful Business operations for 2020. Beginning Inventory 0 Production 36,000 units Sales 30,000 units Ending inventory 6,000 units Cost: RM Material 1.80 per unit Labour 1.50 per unit Variable Overhead 1.00 per unit Fixed Overhead 12,000 Variable selling and administrative 8.200 Fixed selling administrative 3.600 Sales price RM 6.00 Business Berjaya uses a predetermined overhead rate to absorb a fixed overhead. The predetermined overhead rate is calculated based on the following budget figures: Variable Overhead budgeted RM36,000 Fixed Overhead budgeted RM14,000 Production volume 35,000 units REQUIRED: (a) Fixed overhead absorption rate (RM 0.40) (b) Calculate the product cost per unit using absorption costing and marginal costing ( absorption : RM 4.70, marginal : RM 4.30) (c) Statement of profit or loss for the year ended 31 December 2011 on the basis of: (1) Absorption costing ( RM 29 600) (ii) Marginal costing (RM 27 200)