Clamco makes car clamps. The following information is from January’s budget, which is based on a production volume of 6,000 clamps:......................................................................................................... £Opening stock of clamps.............................................................. 0Fixed manufacturing overhead.......................................... 72,000Variable manufacturing overhead..................................... 18,000Selling and administrative expenses (all fixed)................ 25,000Direct labour...................................................................... 120,000Direct materials used.......................................................... 90,000Selling price (per unit)................................................................. 64The actual production and sales volumes for the first three months of the year were as follows:

Actual variable costs per unit and total fixed overheads incurred were exactly as forecast.

Tasks:1. Calculate the profit for each month and for the quartera) using absorption costing;b) using variable costing.2.  Reconcile the profits for each month and for the quarter. Explain why they differ.