The following budgeted information relates to company KCT Bhd for three months that sells one product.

	July	August	September
Sales units	18,000	32,000	25,000
Production in units	25,000	30,000	28,000
	RM	RM	RM
Selling price per unit	16.00	16.00	16.00
Variable production cost per unit
- Direct material	5.00	5.00	5.00
- Direct labour	3.00	3.00	3.00
- Production overhead	2.00	2.00	2.00
- Selling and distribution	1.50	1.50	1.50
- Administration	1.20	1.20	1.20
Fixed cost per month :
- Production overhead	45,000	45,000	45,000
- Selling and distribution	25,000	25,000	25,000
- Administration	15,000	15,000	15,000

Normal activity level for production is 25,000 units per month. Fixed production overhead is to be absorbed based on unit basis.

Required:

Prepare statement for each of the period 1 to 3 based on variable costing technique.

Answer rating: 100% (QA)

Particulars Sales Less variable costs C... View the full answer