Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $115 per unit, and fixed manufacturing costs are $84,000. Sales are estimated to be 7,000 units. If an amount is zero, enter "O'. Do not round interim calculations. Round final answer to nearest whole dollar, a. How much would absorption costing income from operations differ between a plan to produce 7,000 units and a plan to produce 8,400 units? b. How much would variable costing income from operations differ between the two production plans? Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 5,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows Direct materials $75 Direct labor 35 Fixed factory overhead 15 Variable factory overhead 12 Determine the cost of the finished goods Inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing Variable costing