SL makes and sells one product which has the following standard production cost $ Direct labour Direct materials Production overhead 3 hours at $6 per hour 4 kilogram at $7 per kg variable 18 28 3 Fixed 20 Standard production cost per unit 69 Normal output is 16,000 units per annum. Variable selling, distribution and administration cost are 20 per cent of sales values. Fixed selling, distribution and administration cost are $ 180,000 per annum. There are no units in finished good inventory at 1 October 20x2. The fixed overhead expenditure is spread evenly throughout the year. The selling price per unit is $140. Production and sales budgets are as follows Production Sales Required: Six month ending 31 March 20x3 Six Month ending 30 September 20x3 8,500 7,000 7,000 8,000 Prepare profit statements for each of the six monthly periods, using the following methods i. ii. Marginal costing Absorption costing