Rusty's In-Sink Scrap Eraser is a manufacturer of commercial grade garbage disposals. Information related to Rusty's commercial garbage disposals is provided below. Rusty's had no beginning finished goods inventory of this item. Production in units 5,000 garbage disposal Sales in units 4,600 garbage disposals Unit selling price $230 per disposal Direct labor hours used 2,500 hours Manufacturing costs: Direct materials $250,000 Direct labor $ 60,000 Variable manufacturing overhead $ 30,000 Fixed manufacturing overhead $250,000 Non-manufacturing costs: Variable selling & admin. expenses $ 55,200 Fixed selling expenses $180,000 1. Determine the actual variable product cost of one commercial garbage disposal. 2. Determine the total cost of ending finished goods inventory using absorption costing. 3. Determine the difference in income under variable versus absorption costing for Rusty's In-Sink Scrap Eraser. Indicate which method will report higher income if it is different