Variable Costing, Absorption Costing, Inventory Valuation Zeitgeist Company manufactures silicon sleeves for MP3 players. In August 2013, Zeitgeist began producing the colorful sleeves. During the month of August, 16,000 were produced, and 14,750 were sold at $6.95 each. The following costs were incurred: Direct materials Direct labor Variable overhead $26,880 6,720 5,920 28,160 A selling commission of 8% of sales price was paid. Administrative expenses, all fixed, amounted to $37,890