Smith Company uses variable costing. During January Smith had variable costing income of $200,000. Smith prepared the following schedule of its absorption costing finished goods inventory - it had no work-in-process inventory. January 1 January 31 Direct materials $ 24,000 $ 18,000 Direct labour 15,000 11,000 Variable overhead 31,200 23,600 Fixed overhead 18,900 14,800 Total cost $ 89,100 $ 67,400 Using the information provided, answer the following questions: HINT - what are the 5 pieces of information you need for this type of question? a) Without making any calculations, which costing method will produce a higher net income for Smith? b) What is Smith's absorption costing net income? X