Rs. Task 02 Akeesh PLC manufactures and sells a single product called X. The following budgeted actual information is provided in relation to the production of this product: Selling price per unit 100.00 Direct materials per unit 16.00 Direct labour per unit 10.00 Variable production overheads per unit Details for the months of May and June 2020 are as follows: May June 6.00 1,000 Production of Product X 760 Sales of Product X (units) 800 1,000 Budgeted and actual fixed production overheads are Rs. 8,000 per month and are absorbed on a unit basis. The budgeted level of production is 800 units per month. Other costs Fixed selling Rs. 8,000 per month Fixed Administration Rs. 4,000 per month Variable sales commission 10% of sales revenue There was no opening inventory of Product X at the start of May. 1. Prepare income statement for month of May 2020 under marginal costing and absorption costing. (14 marks) 2. Explain the difference between the profits under two approaches. (6 marks)