RefreshAde produced 11,000 cases of powdered drink mix and sold 10.000 cases in April 2018 The sales price was $27, variable costs were $12 per case (59 manufacturing and $3 selling and administrative), and total fixed costs were $75,000 ($55,000 manufacturing overhead and $20,000 selling and administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable costing (Click the icon to view the data using variable costing.) Read the requirements Operating Income Month Ended April 30, 2018 RefreshAde produced 11,000 cases of powdered drink mix and sold 10,000 cases in April 2018. The sales price was $27, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $75,000 ($55,000 manufacturing overhead and $20,000 selling and administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable costing (Click the icon to view the data using variable costing.) Read the requirements Requirement 2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30 The cost per unit is and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30 is Requirement 3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable costing? Explain why. OA. The finished goods inventory under the absorption costing method is lower than under the variable costing method. The primary reason for this is that with variable costing, some manufacturing fixed costs are still in Finished Goods Inventory on the balance sheet and have not been expensed OB. The finished goods inventory under the absorption costing method is higher than under the variable costing method. The primary reason for this is that the absorption costing method considers selling and administrative costs to be product costs, and the variable costing method considers them period costs. OC. The finished goods inventory under the absorption costing method is higher than under the variable costing method. The primary reason for this is that the unit cost is higher under absorption costing because fixed manufacturing costs are absorbed by the entire production run and not expensed as a period cost, as they would be under the variable costing method. OD. The finished goods inventory under the absorption costing method is lower than under the variable costing method. The primary reason for this is that the unit cost is higher under variable costing because fixed manufacturing costs are considered a product cost and are not expensed as a period cost, as they would be under the absorption costing method