ACC2233 Hand-In Assignment 7 QUESTION ONE: Absorption and Variable lcosting: Prepare and Reconcile Variable costing Statements Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom moulded to each customer's ear. Cost data for the product follows: Variable costs per unit: Direct materials $12 Direct labour 24 Variable factory overhead 8 Variable selling and administrative _6 Total variable costs per unit Fixed costs per month: Fixed manufacturing overhead $240,000 Fixed selling and administrative 4:10.000 Total xed costs per month M The product sells for $30 per unit. Production and sales data for May and June, the first two months of operations. are as follows: Units Produced Units Sold May 15,000 13,000 June 15,000 17,000