Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $50 per unit, and variable manufacturing costs are $150 per unit. Production was 117,000 units, while sales were 109,980 units. a.  Determine whether variable costing operating income is less than or greater than absorption costing operating income.   b.  Determine the difference in variable costing and absorption costing operating income. $fill in the blank 2

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Variable Costing—Production Exceeds Sales

Fixed manufacturing costs are $50 per unit, and variable manufacturing costs are $150 per unit. Production was 117,000 units, while sales were 109,980 units.

a.  Determine whether variable costing operating income is less than or greater than absorption costing operating income.

 

b.  Determine the difference in variable costing and absorption costing operating income.
$fill in the blank 2

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