X Ltd makes widgets. It has no opening inventory Budgeted and actual fixed manufacturing costs are $100,000 Budgeted and actual fixed non manufacturing costs are $40,000 Budgeted and actual production are 10,000 units Variable manufacturing cost was $30 per unit Variable non-manufacturing cost was $5 per unit sold X Ltd sold 9,000 units at $60 per unit Calculate the Operating Income according to both Absorption and Variable costing and explain the difference Y Ltd makes gadgets. It has no opening inventory Closing inventory was 600 units Budgeted and actual fixed manufacturing costs are $800 Budgeted and actual production is 1600 units Variable manufacturing cost was $1.50 per unit The selling price was $5 per unit Sales commissions of 5% of sales revenue are paid to sales people Other non-manufacturing fixed costs total $300 Calculate the Operating Income according to both Absorption and Variable costing and explain the difference