Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter. The following data are available for the third quarter of 2017. Total fixed manufacturing overhead Fixed selling and administrative Sales price per case Direct materials per case $120,000 20,000 34 16 7 Variable manufacturing overhead per case 3 Direct labor per case Required a. Compute the cost per case under both absorption costing and variable costing. Absorption $ 0 Variable $ 0 b. Compute net income under both absorption costing and variable costing. Do not use a negative sign with your answers. SMUCKERS Absorption Costing Income Statement For the Third Quarter of 2017 Sales Net income Sales Fixed expenses: SMUCKERS 0 x 0 x 0 * 0 * 0 x Variable Costing Income Statement For the Third Quarter of 2017 * x = x $ 0 x 0 x 0 x x 0 x Selling and administrative Net income 0 x 0 x $ 0 x