Question: Rayners plc manufactures and sells electric blankets. The selling price is 12. Each blanket has the unit cost set out below. Administration costs are incurred at the rate of 20,000 per annum. The company achieved the production and sales of blankets aet out below. The following information is also relevant (1) The overhead costs of 2 per unit (variable production overhead) and 3 per unit (Fixed production overhead) have been calculated on the basis of a budgeted production volume of 90,000 units. (2) There was no inflation. (3) There was no opening stock. Unit cost Direct material 2 Direct Labour 1 Variable production overhead Fixed production overhead 3 lowes 2 8 Production and sales Year Production (in 000s units) Sales (in 000s units) 1 100 90 2 110 110 3 90 95 Required (a) Prepare an operating statement for each year using: (i) Marginal Costing. (ii) Absorption Costing. (50 marks)