Variable and Absorption Costing a$.$ Prepare gross profit computations for Year $1$ and Year $2$ using absorption costing. Do not use negative signs with your answers. b$.$ Prepare gross profit computations for Year $1$ and Year $2$ using variable costing. Do not use negative signs with your answers.

b$.$ Prepare gross profit computations for Year $1$ and Year $2$ using variable costing.

Do not use negative signs with your answers.

c$.$ Explain how your answers illustrate the impact of differences between production and sales volumes on the gross profits reported each year under absorption and variable costing.

Select the most appropriate statement.

If production volume exceeds sales volume, the absorption costing gross profit will be higher than the variable costing gross profit.

If sales volume exceeds production volume, the absorption costing gross profit will be higher than the variable costing gross profit.

If production volume exceeds sales volume, the variable costing gross profit will be higher than the absorption costing gross profit.

If sales volume exceeds production volume, the variable costing gross profit will be lower than the absorption costing gross profit.

Please make sure to answer all parts of the question as clearly stated. Read the entire question carefully and respond strictly in the table format provided.

I follow the U$.$S$.$ accounting format, so please ensure your answers comply with GAAP standards.

Please do not add any extra information$$just provide the table exactly as shown.

Only fill in the exact number of rows in the table as shown$$no more, no less.