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Mr. Cheung has instructed his chief accountant to prepare a contribution income statement showing the...

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Accounting

Mr. Cheung has instructed his chief accountant to prepare a contribution income statement showing the comparison of the actual performance for the year ended December 312021 with the master budget. The master budget was fixed at the beginning of the year 2021. The company's costing system for manufacturing has two direct-cost categories (direct material and direct labour-both variable) and two production overhead cost categories (variable and fixed manufacturing overhead). Assume there were no beginning and ending inventory. The division adopts direct labour hours as the allocation base for manufacturing overhead. The contribution income statement (ignore nonproduction cost) and other information is shown below.
\table[[,\table[[Contribution Income Statement],[Static],[Budget]],Actual],[,,],[Number of units produced and sold,40,000,46,000],[,$,$
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