Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal $300$ workstations $($at a sales price of $$3,400$ each$)$ for $2021.$ The workstations' manufacturing costs include the following.

Direct materials

Direct labor

$$720$ per unit

Variable overhead

Fixed overhead

$$390$ per unit

$$60$ per unit

$$14,400$ per year

Selling and administrative expenses for these workstations follow.

Variable

Fixed

$$40$ per unit

$$3,300$ 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 do$$s not have sufficient storage space for many more workstations.

Required:

Complete the following income statements using absorption costing.

Complete the following income statements using variable costing.

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

Complete this question by entering your answers in the tabs below.

Complete the following income statements using variable costing.

$\backslash$table$[[$BUSINESS SOLUTIONS$],[$Income Statements $($Variable Costing$)],[$Production volume $($units$),\backslash$table$[[300],[$workstations$],[300],[$workstations$]],\{$

$\backslash$table$[[320],[$workstations$],[300],[$workstations$.]]\}],[$Sales volume $($units$)],[$Sales$,$$$,1,020,000,$$$,1,020,000$