Sparn Limited incurs the following costs to produce and sell a single product: Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative $16 15 7 4 expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative 194,500 646,000 expenses During the last year, 38,900 units were produced and 32,300 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $250,800 for the 6,600 unsold units Required: 1-a ls the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? Absorption costing Variable costing 1-b Show computations to support your