QUESTION I (20 MARKS) Teratak Enterprise has just organized a new division to manufacture and sell specially designed e-tables for personal computers. The division's monthly oosts are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials RM86 Direct labor RM10 Variable manufacturing overhead Fixed manufacturing overhead Selling and administrative cost: Variable RM240,000 15% of sales RM160,000 Fixed Duning the current year operations, Teratak Enterprise produced 4,000 units and sold 3,200 units. The selling price of the company's product is RM250 per unit. Required: Compute the unit product cost under: (0 Absorption costing Variable costing (! (5 marks) Prepare an income statement for the month using absorption costing. (5 marks) Prepare a contribution format income statement for the month using variable costing. () (6 marks) Reconcile the absorption costing and variable costing net operating income. (P (4 marks) Page 4 of 8