Sparn Limited incurs the following costs to produce and sell a single product: Variable costs per unit: Direct materials $ 24 Direct labour 14 Variable manufacturing overhead 6 Variable selling and administrative expenses 6 Fixed costs per year: Fixed manufacturing overhead 256,200 Fixed selling and administrative expenses 590,000 During the last year, 42,700 units were produced and 29,500 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $193,600 for the 4,400 unsold units. Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? multiple choice 1 Absorption costing Variable costing 1-b. Show computations to support your answer.