43 Companies use absorption costing and variable costing for different difference in unit cost that results from these methods is necessary Tor following production, cost, and pricing data are available: purposes. Understanding the Units in beginning inventory Units produced Units sold Sales price per unit Variable costs per unit: Direct materials Direct labor Manufacturing overhead Selling and administrative Fixed costs in total: 12,000 10,500 S22 S7 Manufacturing overhead Selling and administrative 36,000 50,000 Required: Use a minus sign to indicate a loss, if necessary. Absorption costing Variable costing late the net operating income for the company, using absorption costing and variable costing. Net Operating Income (Loss) Absorption costing: Sales Less: Cost of goods sold ($??? 10,500) Gross proft Less: Selling and administrative ($50,000+ ($1 10,500) Net operating income Variable costing: Sales Variable costs ($???* 10,500)+ ($??? 10,500) Contribution margin Fixed costs Net operating loss Extra 5 Points: Describe the difference between Absorption and Variable Costing