a. Explain what you understand by the terms 'Absorption (Full) costing' and *Marginal (Variable) costing'. b. Cheriton Company makes and sells plastic chairs. The company prepares variable costing income statements for management and absorption costing income statements for external use. In May 2019, it produced 22000 units and sold 20000 units. Beginning inventory was 2000 units. The records show the following details for May 2019. Selling price $100 Direct materials cost 12 Direct labour cost per hour 18 4 Variable manufacturing overhead cost Variable selling expense 8 $220000 Fixed manufacturing overhead cost Fixed admin. and distribution cost $100000 Required: a. Prepare a profit and loss account using Variable costing b. Prepare a profit and loss account using Absorption costing