Grainger Company produces only one product and sells that product for $100 per unit. Cost information for the product is as follows:

Direct Material $14per Unit

Direct Labor $26per Unit

Variable Overhead $6per Unit

Fixed Overhead $33,500

Selling expenses are $3 per unit and are all variable. Administrative expenses of $15,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory.

A. Compute net income under

i. Absorption Costing $____

ii. Variable Costing $_____

B. Which costing method provide higher net income? By how much?

The absorption costing variable costing method provided more net income by $______