9-26. ABSORPTION AND VARIABLE COSTING. (CMA) Hoston, Inc. planned and actually manufactured 220,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $22 per unit produced. Variable operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed manufacturing costs were $660,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $440,000. Houston sold 160,000 units of product at $44 per unit. Required 1. Houston's 2020 operating income using absorption costing is (a) $1,160,000, (b) $980,000, (c) $1,420,000, (d) $1,600,000, or (e) none of these. Show supporting calculations. 2. Houston's 2020 operating income using variable costing is (a) $1,640,000, (b) $1,160,000, (c) $980,000, (d) $1,420,000, or (e) none of these. Show supporting calculations