You have been provided with the following cost information: Variable per unit Cost Total Fixed Costs per period Direct materials $ 6 $ -0- Direct labour 13 -0- Manufacturing overhead 7 20,000 Selling and Administrative 3 25,000 TOTAL $29 $45,000 The company has no beginning inventory, produced 1,000 units and sold 950 units during the current period. What is inventoriable cost per unit under variable costing and absorption costing, respectively? a. $29.00; $39.00 b. $26.00; $39.00 (correct answer) C. $26.00; $40.05 d. $26.00; $68.32 2020 2021 Units produced 1,000 1,000 Units sold 825 875 Selling price per unit $20.00 $20.00 Total Manufacturing Costs: Variable 2,000 2,000 Fixed 3,000 3,000 Total Selling and Administration Variable 825 875 Fixed 3,000 3,000 What is the difference in operating income between absorption and variable costing for 2021? a. Absorption income is $1,250 greater than variable income. b. Absorption income is $1,250 less than variable income. Absorption income is $375 greater than variable income. d. Absorption income is $2,125 greater than variable income. C