Question 4 Touch light is manufactured by QQ Ltd. The following data pertain to the company's operations last year: Units in beginning inventory 5,000 Units produced 60,000 Units sold 40,000 Selling price per unit RM8 Variable costs per unit: Direct materials Direct labor hi Variable manufacturing overhead Variable selling and administrative Fixed costs in total: Fixed manufacturing overhead Fixed selling and administrative RM2 RM1.60 RM0.80 RM0.60 RM20,000 RM5,000 Required: (a) Prepare an income statement for the year using variable costing. (11 marks) (b) Distinguish between variable and absorption costing and describe how non- manufacturing fixed costs are treated in these two costing systems. (14 marks) [Total: 25 Marks