Jane Company produces clothes. One of the company's products is Diana Skirts which are sold for $90 each. The standard cost of producing 100 units of Diana skirt is shown below: $ Direct labour 500...

Extracted text: Jane Company produces clothes. One of the company's products is Diana Skirts which are sold for $90 each. The standard cost of producing 100 units of Diana skirt is shown below: $ Direct labour 500 Direct material 2,000 Variable production overhead 1,200 Fixed production overhead 1,800 ТОTAL 5,500 • Production and inventory data during the month of October 2021 is given below: Units Unit production 5000 Opening inventory 10,000 Closing inventory 8,000 • The company's normal production is 120,000 units per annum. • Fixed production overhead cost spread evenly over the year. • The fixed selling and distribution cost per year is $78,000. Variable selling and distribution cost is $5.00 per unit. Required: Reconcile the difference in the profits under marginal and absorption costing approaches.