Carol is studying the working papers from her client's $2025$ income statement because her manager wants her to reconstruct that

same income statement without the benefit of first seeing the finished product. She knows the client uses standard costing within its

accounting system, but she has to figure out which inventory costing method it uses. The working paper shows the following details.

No other variances were reported, and the prior year per$-$unit costs were the same as the $2025$ per$-$unit costs.

Gross margin

Sales volume

Budgeted production

Beginning FG Inventory

Ending FG Inventory

Fixed$-$MOH volume variance $($unfavorable$)$

Operating income

Sales

$$4,040$

$200$ units

$230$ units

$33$ units

$43$ units

$$360$

$$640$

$$16,200$

Which inventory costing method did the client use in $2025,$ variable or absorption$?$

How much did the client capitalize into inventory on a per$-$unit basis?

Inventory cost per unit

$