pqr limited is a manufacturer of sports shoes the company uses a standard system the 4526208

PQR limited is a manufacturer of sports shoes. The company uses a standard system. The standard cost per pair of sports shoes is as follows:$Direct materials500Direct labor: 4 hours x $ 60/hour240Production overheads Variable 4 hours x $ 30/hour120 Fixed100Standard production cost960Standard selling price1500Additional informationDuring the month of March 2011, production was 10000 units as planned but the sales made were 8000 units.The total fixed production overhead variance during the month was $100000 adverse.The standard fixed production overhead absorption rate was based on a budget activity of 10000 units.There was no opening stock at the beginning of the month.All units were sold at the standard selling price.Other costs incurred during the month were as follows:VariableFixed$Selling and distribution20%of sales600000Administration1000000Required:Income statement for the month of March 2011 usingAbsorption costingMarginal costingExplain the reason why the income statement under absorption costing shows a different profit or loss figure compared with the income statement under marginal costing.Reconciliation statement of the difference between profit or loss under absorption costing and marginal costing in (a) above.

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount