Variable costing Slumberworld Pty Ltd's planned production for the current year was 15,000 units. This production level was achieved, but only 13,500 units were sold at $60 each. Other data are as follows Direct material used Direct labour cost incurred Fixed manufacturing overhead (actual and planned) Variable manufacturing overhead (actual and planned) Fixed selling and administrative expenses Variable selling and administrative expenses Finished goods inventory, 1 January 120,000 60,000 75,000 36,000 90,000 13,500 None The company uses normal costing. There were.no work in process inventories at the beginning or end of the year Required 1.Prepare an income statement for Slumberworld for the current year using: 1. absorption costing 2. variable costing 2. Which costing method, absorption costing or variable costing, shows a higher operating profit? Why? What would be Slumberworld's finished goods inventory cost on 31 December, under: 3. 1. absorption costing 2. variable costing 4. Which costing method, variable or absorption, would you recommend to s management? Why