Ortiz Company produced 10.300 units during the past year but sold only 8,500 of the units. The following additional information is also available: Direct materials used Direct labour incurred $85,490 36,050 Variable manufacturing overhead 23.175 Fixed manufacturing overhead 47,380 Fixed selling and administrative expenses 69,200 Variable selling and administrative expenses 10,300 There was no work in process inventory at the beginning of the year. Ortiz did not have any beginning finished goods inventory either. (a) Your answer is incorrect. Calculate Ortiz Company's finished goods inventory cost on December 31 under variable costing. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answer to O decimal places, e.g. 125.) Finished goods inventory cost $ Determine which costing method, absorption or variable, would show a higher net income for the year. would show a higher net income. By what amount? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 125.) Net income will be higher by