Pepsi Co.'s planned production for the year that just ended was 30,000 units. Actual production totaled 30,000 units, and the company sold 26,000 units of its manufacturing output at $50 per unit. The following costs were incurred: $ 210,000 320,000 Manufacturing costs: Direct material used Direct labor Variable manufacturing overhead Fixed manufacturing overhead Selling and administrative: 160,000 150,000 60,000 Variable Selling and administrative 180,000 Fixed Selling and administrative Finished-goods inventory, January 1 0 D. Which costing methods, absorption or variable costing, would show a higher operating income for the year? By what amount. (20 Marks)