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Secret Butcher is a frozen lamb manufacturer for wholesale customers in Malaysia. The following are the operating data in June 2020: Unit sold 120,000 Unit

Secret Butcher is a frozen lamb manufacturer for wholesale customers in Malaysia. The following are the operating data in June 2020:

Unit sold

120,000

Unit produced

130,000

Price per unit

RM30

Variable product cost per unit

RM10

Total fixed manufacturing overhead

RM130,000

Total fixed selling and administrative cost

RM360,000

What is the difference of net income between marginal and absorption costing method?

A. Marginal costing net income is RM10,000 higher than absorption costing.

B.Absorption costing net income is RM10,000 higher than marginal costing

C.There is no difference in net income between marginal and absorption costing

D.Absorption costing net income is RM130,000 higher than marginal costing

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