Absorption vs. Variable Costing Assignment (PART TWO) B Company Beginning inventory is 4,000 units All rates were the same in the previous year. BUDGETED: Variable mfg. cost \$20 per unit [DM-\$8; DL-\$7; Var. mfg. overhead-\$5] Fixed mfg. cost $10 per unit [based on planned prod. of 75,000 units] Var. S\&A cost $3 per unit [based on units sold] Fixed S\&A cost \$ $2 per unit [based on planned sales of 60,000 units] There were no efficiency variances. There were no fixed S\&A spending variances. We spent the same as budgeted. There was $50,000F in material, labour and variable overhead spending variances. There was a $20,000 unfavourable fixed overhead spending variance. Fixed overhead denominator variance must be calculated. REQUIRED: Make an excel spreadsheet, using cellreferenceswherever possible, that will allow a user to enter the above numbers and... 1) Compute net income using Absorption costing. 2) Compute net income using Variable (direct) costing. 3) Reconcile the difference in net income