1. Infotech Co . produces 20,000 units and sells 18,000 units of microchips in a period. There are no opening stocks in the period. The total cost of production in RM20 each made up of a variable cost...

1.
Infotech
Co. produces 20,000 units

and
sells 18,000 units

of microchips in a period. There
are no opening stocks
in the period.
The total cost of production in RM20 each
made up of
a
variable cost per unit of
RM15
and
fixed cost per
unit of RM5. The
selling
price
per unit of microchip is
RM35.

Calculate the
profit under the absorption costing principle. What is the amount of the
difference between the variable costing (refer to your answers in the previous
tutorial question) and absorption costing net operating incomes? What is the
cause of this difference?