QUESTION 2 Nigeria Biscuit Manufacturing Company (NBMC), located in Kano, produces three varieties of biscuits: Cream Crackers, Digestive Biscuits, and Chocolate Bites. Production is organised in batches due to the homogeneous nature of each variety. The following data relates to Batch Production Run No. BP-2024/09 for Digestive Biscuits during September 2024: Batch size: 8,000 packets Direct Materials consumed: N1,260,000 Direct Labour: 480 hours at N1,200 per hour Factory Overhead is absorbed at 150% of direct labour cost. Normal spoilage (defective packets) is expected to be 5% of input. Actual output from the batch was 7,400 good packets. Selling price per packet: N600 Additional information: Spoiled units have a scrap value of N80 per packet. The company policy is to charge the cost of normal spoilage to good output, while abnormal spoilage is treated as a period loss. Required: (a) Prepare a Batch Cost Statement for Batch No. BP-2024/09, showing total batch cost and cost per good packet of output. (10 marks) (b) Calculate the abnormal spoilage (in units and Naira) and state how it should be treated in the financial statements. (6 marks) (c) Distinguish between Job Costing and Batch Costing, highlighting TWO similarities and TWO differences. (8 marks) Total: 24 marks