Baker Company Produced 30,000 Units and Sold 28,000 Units in 2011

Baker Company produced 30,000 units and sold 28,000 units in 2011. Beginning inventory was zero. During the period, the following costs were incurred: $\begin{array}{lr}\text { Indirect labour } & £ 60,000 \\\text { Indirect materials } & 30,000 \\\text { Other } & 90,000 \\\text { Fixed manufacturing overhead } & 180,000 \\\text { Fixed administrative expenses } & 150,000 \\\text { Fixed selling expenses } & 120,000 \\\text { Variable selling expenses, per unit } & 40 \\\text { Direct labour, per unit } & 80 \\\text { Direct materials, per unit } & 20\end{array}$
a.Absorption costing
b.Variable costing