I need some help with part 1.2
TLC Ltd manufactures a single product Cot. The following figures relate to Cot for one year period.
Acivity level 50% 100%
Sales and production ( units) 400 800

Sales £ 8000 16000
Prod. cost:Variable 3200 6400
Fixed 1600 1600

Sales distribution, admin cost
Variable 1600 3200
Fixed 2400 2400

The normal level of activity for 1 year 800 units. Fixed costs are incurred evently throughout the year, and actual fixed costs are the same as budgeted.
There were no stocks of Cot at the begining of year.
In the first quarter 220 units were produced and 160 units sold.

Required:
a) what would be the fixed production costs absorbed by Cot if absorption costing is used?
b) What would be the under/over recovery of overheads be during the quarter?


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