Assignment 1 [Variable costing] Selected data for Babar Ltd of past year of operations are presented below Product X 25000 18000 $4.00 8000 Production in units Sales ( in units] Selling price DL Hours Manufacturing cost Raw Materials [8] Salaries of direct labour[S] Variable overhead Fixed overhead Non manufacturing cost Variable selling Fixed selling cost 17000 24000 14000 8000 18000 15000 Estimated fixed cost = $28000 Budgeted Machine hours = 8400 Company uses absorption cost based on machine hours REQUIRED 1. Calculate product cost of product X using variable cost. 2. Calculate product cost of product X using absorption cost .. 3. Calculate variable cost of goods for the year 4. Find the variable-costing net income 5. Calculate cost of goods for the year using absorption method 6. Find the net income using absorption method