8. Using the Absorption and Variable Costing techniques, prepare and present two separate Statements of Profit or loss (Income statements) based on the data given below for each of the two quarters. You should clearly show how the costs were calculated under each of the costing technique. You also need to reconcile both the figures and interpret data. Explain with supportive calculations, why the profits under each technique are different. The company's budget for Quarters 1and 2 are as follows: Per Quarter: units Production 80,000 units Sales 80,000 units Opening Stock nil nil Closing Stock Budgeted Quarterly Statement of Profit or Loss: Sales Production Cost of Sales: Variable 52,000 80,000 Fixed 16,000 (68,000) 12,000 Selling & Administration Costs(fixed) (5,200) Profit 6,800 Actual production, sales, and stock in units for quarters 1 and 2 are: Quarter 1 Quarter 2 Opening Stock 0 12,000 Production 78,000 66,000 Sales 66,000 74,000 Closing Stock 12,000 4,000