LO1 9.15 Absorption and variable inventory and income Asian Iron began last year with no inventories. During the year, 10 500 units were produced of which 9400 were sold. Data concerning last year's operations appear here. $32 900 2 300 3 300 Revenue Variable direct materials costs Variable direct labour costs Variable manufacturing overhead Variable selling Fixed manufacturing overhead Fixed selling and administrative costs 2 800 940 8 250 14 560 Variable manufacturing costs reflect the variable cost to produce the number of units manufactured. However, variable selling costs are not incurred until the units are sold, so they reflect the cost for the number of units sold. Asian Iron allocates actual manufacturing overhead costs to inventory based on actual units produced. Required (a) Calculate the value of ending inventory on the balance sheet under the following methods: (i) variable costing (ii) absorption costing. (b) Calculate operating income under each of the following methods: (i) variable costing (ii) absorption costing. (c) Estimate the variable costing operating income if 12 110 units were produced and sold in a year