Hima Manufacturing incurred the following costs and revenues in its first year of operations:

Direct materials

$160,000

Direct labour

80,000

Fixed manufacturing overhead

100,000

Variable manufacturing overhead

60,000

Fixed selling and administrative expenses were $112,500, and variable selling administrative expenses totalled $36,000.

Production for the period was 50,000 units, and 45,000 units were sold at a selling price per unit of $15. What is the variable costing and absorption costing operating incomes?

a) $126,500 variable; $166,500 absorption

b) $126,500 variable; $126,500 absorption

c) $156,500 variable; $166,500 absorption

d) $256,500 variable; $126,500 absorption