ultra ltd manufactures a single product and the following information related to ultra ltd for the month of july 2019

a. Selling price 1100

Direct Material 450

Direct Labour 200

Variable Overhead 150

b. Production and sales for the month of July 2019 were 950 units and 900 units respectivelty

c. Find over head were follows:

Budgeted Actual

Production overhead 90000 100000

Administration Overhead 36000 36000

Distribution Overhead 25000 25000

d. Variable Distribution overheard 20000

e. Budgeted production for the month was 1000 units

f. There were no opening stock

g. Fixed Overhead are absorbed on production unit basis

1. Prepare profit and loss statements for the month of July 2018 under absorption costing and marginal costing

2. explain the difference between the profit under two approaches.