Woolly ltd started business on 1st december 2016 the output of the product S at selling price of RM 80. The direct material used for a unit of production is 4kg at cost of RN 3 per kg and direct labour hours involved in a unit of production is 3 hours with payment of RM 6 per hour. The lubricant involved for labour hour in RM 2 with rental payment of RM 3 per labour hours. Selling and administrative overheads per month is RM 20,000. Normal capacity level per month is 3000 units. Actual results: November December production (units) 3,500 2,500 sales (units) 3,000 2,600

a) determine the total standard cost per unit of product S

b) prepare profit and loss statement for november and December 2016, using marginal cost method

C) describe two arguments over application of marginal costing.