Sparn Limited incurs the following costs to produce and sell a single product: Variable costs per...

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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 expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 13 11 315 6 228,000 467,600 During the last year, 38,000 units were produced and 33,400 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $133,400 for the 4,600 unsold units. Required: 1-a Is 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 answer. Direct materials Direct labour Variable Absorption Costing Costing 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 expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 13 11 315 6 228,000 467,600 During the last year, 38,000 units were produced and 33,400 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $133,400 for the 4,600 unsold units. Required: 1-a Is 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 answer. Direct materials Direct labour Variable Absorption Costing Costing