Allayers Company sells its special motorcycle screws that is manufactures at RM25 per unit. The company’s total fixed manufacturing overhead is RM44,000 which is based on a production of 22,000 units per annum. The information for the financial year 2019 is as follows:              
Production unit 22,000
Sales unit 18,900 Beginning inventory 3,300

Direct material and
labour per unit               RM14
Variable manufacturing
overheadperunit            RM4
Variable selling and
administrative costs
per unit                            RM2
Fixed selling and
administrative expenses
per annum RM20,000
 
Based on the information above, the accountant of the company has prepared absorption income statement as follows:
 
Sales (at 18,900 units)           RM472,500
 
Less: Cost of goods sold                                                   (RM378,000)
 
Gross margin                                                                            RM94,500
 
Less: Selling and administrative costs                (RM57,800)
 
Net operating profit                                                              RM36,700
 
 
Required:
 
a.       Calculate unit product cost under variable costing method.
 
b.      Redo income statement for the company by using variable costing method.