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Grainger Company produces only one product and sells that product for $100 per unit. Cost information for the product is as follows: Direct Material $15 per Unit Direct Labor $26 per Unit Variable Overhead $5 per Unit Fixed Overhead $33,500 Selling expenses are $5 per unit and are all variable. Administrative expenses of $25,000 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 method provided more net income by $ Summarized data for Walrus Co. for its first year of operations are: Sales (100,000 units) $5,000,000 Production Costs (120,000 units): Direct Material 1,920,000 Direct Labor 1,440,000 Manufacturing Overhead: Variable 840,000 Fixed 300,000 Selling and Administrative Expenses: Variable 260,000 Fixed 440,000 Walrus Co. Variable Costing Income Statement Sales Variable Cost of Goods Sold: Direct Material Direct Labor Variable Overhead $ Ending Inventory Total Variable Cost of Goods Sold Variable Selling Expenses bol Contribution Margin Fixed Expenses: Fixed Manufacturing Overhead Fixed Administrative Expenses Net Income