Santana Rey expects sales of Business Solutions$$ line of computer workstation furniture to equal $300$ workstations $($at a sales price of $$3,900$ each$)$ for $2021.$ The workstations$$ manufacturing costs include the following.

Direct materials $ $710$ per unit

Direct labor $ $400$ per unit

Variable overhead $ $90$ per unit

Fixed overhead $ $28,800$ per year

Selling and administrative expenses for these workstations follow.

Variable $ $45$ per unit

Fixed $ $3,200$ per year

Santana is considering how many workstations to produce in $2021.$ She is confident that she will be able to sell any workstations in her $2021$ ending inventory during $2022.$ However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.

Required:

$1.$ Complete the following income statements using absorption costing.

$2.$ Complete the following income statements using variable costing.

$3.$ Which costing method, absorption or variable, yields the higher income when $320$ workstations are produced and $300$ are sold?