Question 23 Ortiz Company produced 10,700 units during the past year but sold only 8,300 of the units. The following additional information is also available: Direct materials used $95,765 Direct labour incurred 33,170 Variable manufacturing overhead 27,285 Fixed manufacturing overhead 49,755 Fixed selling and administrative expenses 69,700 Variable selling and administrative expenses 10,700 There was no work in process inventory at the beginning of the year. Ortiz did not have any beginning finished goods inventory either. 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 0 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 $