Question 1 Parsally correct Mark 0.37 out of 1.00 Variable and Absorption Costing Grant Company sells its product for $57 per unit. Variable manufacturing costs per unit are $35. and fixed manufacturing costs at the normal operating level of 18,000 units are $90,000. Variable selling expenses are $5 per unit sold. Fixed administrative expenses total $155.000. Grant had 7.000 units at a per-unit cost of $40 in beginning inventory in 2016. During 2016, the company produced 18.000 units and sold 20.000 Would net income for Grant Company in 2016 be higher if calculated using variable costing or using absorption costing? Calculate reported income using each method. Do not use negative signs with any answers. Absorption Costing Income Statement Cost of Goods Sold: Beginning inventory Variable costs Red Costs Less Ending inventory Cost of Goods Sold Gross profit Sepete 280.000 630,000 90.000 200.000 . 1.140,000 O 100.000 255.000 1102 PM Type here to search After this meeting, Robert and Jane requested an investigation of production costs and comparative efficiency of producing published versus online advertising services. The controller, Tim Gentry, indicated that ATI's efficiency was comparable to that of its competitors and prepared the following cost data: Published Advertising Online Advertising Estimated number of production units 200,000 10,000,000 Selling price $200 $2.50 Direct product costs $21.000.000 $5,000,000 Overhead allocation 59.310.000 $7,315.000 Overhead per unit $47 5073 Direct costs per unit 5105 $0.50 Number of customers 180.000 25.000 Number of salesperson days 32.000 5.500 Number of art and design hours 35.000 5.000 Number of creative services subcontract hours 100.000 25.000 Number of customer service calls 72.000 8.000 "Based on direct labor costs Support