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 $ 26 13 633 7 158,400 759,000 During the last year, 39,600 units were produced and 34,500 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $214,200 for the 5,100 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 O Variable costing