Fast Track Auto produces and sells an auto part for $85 per unit. In 2022, 125,000 parts were produced, and 90,000 units were sold. Beginning inventory was 5,000 units. Other information for the year includes:

Direct materials $21 per unit Direct manufacturing labor $6 per unit Variable manufacturing costs $3 per unit Sales commissions $6 per part Fixed manufacturing costs $760,000 per year Administrative expenses, fixed, variable $270,000 per year

3. What is the total cost of goods sold in 2022 using: a. Absorption costing b. Variable costing

4. What is the ending finished goods balance in 2022 using: a. Absorption costing b. Variable costing

5. Which will produce higher income, absorption or variable? Why? What is the amount of dollar difference in income between absorption costing and variable costing in this situation described here?