Question 5 (CLO2) a) Define both absorption costing and Marginal costing on inventory valuation (2 Marks) b) Name 2 Differences comparing Marginal Costing vs Absorption costing (2 Marks) c) Vegemamas Instant Vege packages high-quality dried Vege for home use. The following costs are taken from Vegemama's accounting records: Fresh Vege: $137,000 Depreciation on the drying machine: $8,100 Glass jars for packaging the vege: $5,000 Electricity to run the drying machines: $15,000 Gasoline for delivery trucks: $24,000 Social Media advertising: $3,000 Depreciation on the Laptop used to do the accounting for the company: $1,000 Calculate the total manufacturing costs. (2 Marks) d) The ABC Heavy Engineering Company is a small company which makes a single product for which the following are their estimated product-related costs per month: Direct materials $4000 Direct labour $7000 Other variable overheads $2000 Stores $1000 Maintenance $2000 The company has fixed overhead costs of $20 000 per year. Sales are estimated as being 60 000 items per year at a price of $4 per item. What is the contribution made by the product? ii. What is the profit made per month by the company? (4 Marks) 1