2. Variable Costing (20 points) The Waterloo Company manufactures and sells a golf cart. The following costs were incurred during the company's first year of operation: Variable Costs per Unit: Manufacturing: Direct Materials Direct Labor Variable Overhead Selling and Administrative $5.00 $ 9.00 $ 3.00 $4.00 Fixed Costs per Year Manufacturing Overhead $192,000 Selling & Administrative $100,000 During the year, the company produced 24,000 units and sold 21,000 units. a) Compute the unit product cost : Assuming that the firm uses Absorption Costing. Assuming that the firm uses Variable Costing. b) What, if any, would the difference in Operating Income for the year be under the two different methodologies? Operating income under Variable costing would be higher / lower / same by $ Circle one Enter 0 if the same