QUESTION 1 (20 MARKS) da new division to manufacture and sell specially designed division's monthly costs are shown in the schedule below: Teratak Enterprise has just organized a new e-tables for personal computers. The division RM86 RM10 Manufacturing costs: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Selling and administrative cost: Variable Fixed RM4 RM240,000 15% of sales RM160,000 perations, Teratak Enterprise produced 4,000 units and sold 3,200 units. During the current year operations, Teratak Enterprise produced 4,000 uni The selling price of the company's product is RM250 per unit. Required: a) Compute the unit product cost under: i) Absorption costing ii) Variable costing (5 marks) Prepare an income statement for the month using absorption costing. b) (5 marks) Prepare a contribution format income statement for the month using variable costing. (6 marks) Reconcile the absorption costing and variable costing net operating income. (4 marks) Page 4 of 8