Grainget Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows:

eBook Calculator Piem Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows: Direct Material $14 per Unit Direct Labor $25 per Unit Variable Overhead $5 per Unit Fixed Overhead $27,200 Selling expenses are $3 per unit and are all variable. Administrative expenses of $12,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory A. Compute net income under 1. Absorption Costing $352,000 X ll. Variable Costing $ B. Which costing method provide higher net income? By how much? The absorption costing method provided more net income by $ Feedback Check My Work A. Remember that absorption costing includes all costs necessary for production. Conversely, variable costing only uses the variable costs that relate directly to the production process. Keep this in mind when calculating net income under each assumption. B. Depending on the cost method chosen, there will be differences due to the way fixed costs are treated under each method (absorption and variable). Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grad