Rivilin is a uni-product firm with the following budgeted amounts:.............................................................................................. £Unit selling price............................................................... 60Unit variable cost.............................................................. 20Fixed production overhead per month..................... 9,600Rivilin’s planned level of production is 800 units a month. However, actual activity was as follows:

There was no opening stock at 1 April.The actual fixed production overhead incurred was accurately predicted at £9,600 a month.The non-production fixed overheads are £10,000 a month.

Required:1.  A variable costing profit statement for each month.2.  An absorption costing profit statement for each month.3.  An explanation of the difference in profits between the two statements.