Abuja Furniture Works Limited manufactures a premium office chair branded 'ExecuSeat'. The company operates a standard costing system and uses absorption costing for its financial statements. However, the newly appointed Management Accountant, Mr. Chukwuemeka Obi, has suggested that marginal costing would provide more useful information for short-term decision-making. The following budgeted and actual data are available for the quarter ended 30 September 2024: Budget: Production: 8,000 units Sales: 8,000 units Fixed production overhead: N640,000 Actual: Production: 10,000 units Sales: 7,000 units Opening inventory: 500 units (valued at budgeted full production cost) Selling price: N250 per unit Direct materials: N60 per unit produced Direct labour: N45 per unit produced Variable production overhead: N25 per unit produced Actual fixed production overhead: N672,000 Variable selling overhead: N10 per unit sold Fixed administration overhead: N120,000 Required: (a) Calculate the budgeted fixed production overhead absorption rate (FOAR) and the full (absorption) cost per unit. (3 marks) (b) Prepare the absorption costing profit statement for the quarter ended 30 September 2024, clearly showing any over or under absorption of fixed production overhead. (12 marks) (c) Explain FOUR situations in which marginal costing is more appropriate than absorption costing for management decision-making, using examples relevant to Abuja Furniture Works Limited. (10 marks) Total: 25 marks