QS 19-27A (Algo) Variable and absorption costing income LO A2 Alex Company reports variable manufacturing costs of $220 per unit and fixed overhead of $15 per unit. The company produced 40,000 units and sold 37,000 units. The company had no beginning finished goods inventory (a) Determine whether absorption costing income is greater than or less than variable costing income. (6) Compute the difference in income between absorption costing income and variable costing income, Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the difference in income between absorption costing income and variable costing income. (Leave no cells blank - be certain to enter "o wherever required.) Fixed overhead in ending FG inventory $ 8,800,000 Fixed overhead in beginning FG Inventory 565,000 Difference between absorption costing and variable costing income S 8,245,000