Sparn Limited incurs the following costs to produce and sell a single product: 29 14 3 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead 404,800 Fixed selling and administrative expenses 554,200 5 During the last year, 50,600 units were produced and 32,600 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $276,000 for the 6,000 unsold units Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? Absorption costino 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. Variable Costing Absorption Costing Direct matonals Dired tabour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Total cost 6,000 units