During the current period, McLarry Company manufactured 40,000 units. The company sold 32,000 units of product at $30 per unit. At the end of the period, there were 8.000 unsold units remaining in inventory. The manufacturing costs and selling and administrative expenses during the current period were as follows: total cost no. of unit units cost Current period costs Direct materials $240.000 40.000 6.00 440,000|40,000 11.00 Direct labor 60,000 40,000 1.50 Variable factory overhead Fixed factory overhead 80,000 40,000 2.00 Total $820,000 Selling and administrative expenses Variable $60,000 Fixed 40,000 Total $100,000 than income using Income using absorption costing will be variable costing. $100,000 lower $100,000 higher O $16,000 higher O $16,000 lower