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 3156 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? O Absorption costing O Variable costing 1-b Show computations to support your answer. Direct materials Direct labour Variable Absorption Costing Costing