Solve the Following questions

The management of the Robert Hotel is interested in an analysis of the fixed and variable costs in the electricity used relative to hotel occupancy. The data shown below have been gathered from books and records for the year:-

Guest DaysElectricity Cost

January.................................................................................................................. 1000Rs 400

February..............................................................................................................1500500

March..................................................................................................................2500500

April....................................................................................................................3000700

May......................................................................................................................2500600

June....................................................................................................................4500800

July..................................................................................................................... 65001000

August................................................................................................................6000900

September.........................................................................................................5500900

October............................................................................................................. 3000700

November........................................................................................................ 2500600

December........................................................................................................ 3500800

Year Total..........................................................................................................42,000Rs 8,400

Required:-

Compute the fixed and variable elements of the electricity cost using the high and low point method.

2) The Denton Corporation produced 24000 units of product during the first quarter of the year.

20000 units were sold at Rs 22 per unit. The costs of this production were:-

Materials............................................................................ Rs 60000

Direct labor.......................................................................60000

Factory overhead:-

Variable cost.....................................................................120000

Fixed cost.........................................................................96000

Marketing and administrative expenses for the quarter total Rs 70000; all are fixed expenses.

Required: -Income Statement under (1) Absorption Costing (2) Direct Costing.