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ANSWER ALL THE QUESTIONS QUESTION NO:1 Calculate costs using appropriate techniques of cost analysis to prepare an income statement using variable and absorption costs. UCK Furniture produce one product - desks. Each desk is budgeted to require 4 kg of wood at 3 per kg, 4 hours of labour at 2 per hour, and variable production overheads of 5 per unit. Fixed production overheads are budgeted at 20,000 per month and average production is estimated to be 10,000 units per month. The selling price is fixed at 35 per unit. There is also a variable selling cost of 1 per unit and fixed selling cost of 2,000 per month. During the first two months X plc expects the following levels of activity: January February Production 11,000 units 9.500 units Sales 9,000 units 11,500 units (a) Prepare an income statement using absorption costing and variable costing b. Accurately apply a range of management accounting techniques and produce a financial reporting document. C. Produce financial reports that accurately apply and interpret data for a range of business activities. Make the interpretation of the both costing methods and explain the potential merits and demerits of the both methods