its first 13-45 Variable and Absorption Costing Kwan Manufacturing Company data for 20X0 follow: Sales: 11,000 units at $19 each Actual production 15,500 units Expected volume of production 15,000 units Manufacturing costs incurred $124,000 54,000 Variable Fixed Nonmanufacturing costs incurred Variable Fixed $ 11,000 17,800 1. Determine operating income for 20X0, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.) 2. Assume that there is no January 1, 20X0, inventory; no variances are allocated to inventory; and the firm uses a "full absorption" approach to product costing. Compute (a) the cost assigned to December 31, 20X0, inventory, and (b) operating income for the year ended December 31, 20X0. (Do not prepare a statement.)