Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal $300$ workstations $($at a sales price of

$$3,500$ each$)$ for $2021.$ The workstations' manufacturing costs include the following.

Selling and administrative expenses for these workstations follow.

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:

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?