a newly formed company has drawn up the following budgets for its first two accounti 610060

A newly formed company has drawn up the following budgets for its first two accounting periods;

The following budgeted information applies to both periods:

(a) In period 1, the budgeted profit will be

(i) The same under both absorption costing and marginal costing.

(ii) £750 higher under marginal costing.

(iii) £750 higher under absorption costing.

(iv) £1400 higher under absorption costing.

(b) In period 2, everything was as budgeted, except for the fixed production overhead, which was £15 700.

The reported profit, using absorption costing in period 2, would be

(i) $12 300

(ii) $ 12 690

(iii) $13 140

(iv) $13 840