The sloving process of question 1

Question 1 (30 marks) Ming Kee Company manufactures a coffee machine. The company adopts an absorption-costing system based on standard costs. The variable manufacturing cost consists of the following: S3.50 per unit S1.50per unit Direct material cost Other variable manufacturing cost Standard production rate is 20 units per machine-hour. Budgeted and actual fixed manufacturing overhead costs are S960,000. Budgeted capacity utilization is 60,000 machine hours Sales in 2017 are 1,050,000 units at selling price $10.00 per unit. Non-manufacturing variable operating cost is $2.00 per unit sold. Non-manufacturing fixed operating costs are $200,000. Beginning inventory in 2017 is 50,000 units; ending inventory is 80,000 units. The same standard unit costs were applied in 2016 and 2017. There are no price, spending, or efficiency variances. The company writes off production-volume variance to cost of goods sold