Question Five A company produces and selis one type of product. The details for last year were as follows: Production and Sales Budget Actual Production (units) 25,000 22.000 Sales (units) 23,000 20,000 There was no inventory at the start of the year. Selling price and costs Budget RM Selling price per unit 70 Variable costs per unit 55 Fixed production overhead 130,000 Fixed selling costs 75,000 Actual RM 70 55 118,000 75,000 7 A. Calculate the actual profit for the year that would be reported using: (1) marginal costing: (i) absorption costing B. State four factors that should be considered before the cause of a variance is investigated. a