QS $19-28$A $($Static$)$ Variable and absorption costing income LO A$2$

Zarne Company reports variable manufacturing costs of $$60$ per unit and fixed overhead of $$20$ per unit. Beginning finished goods inventory under absorption costing is $500$ units. The company produced $7,500$ units and sold $8,000$ units.

$($a$)$ Determine whether absorption costing income is greater than or less than variable costing income.

$($b$)$ Compute the difference in income between absorption costing income and variable costing income.