1.

Variable CostingSales Exceed Production

The beginning inventory is 8,500 units. All of the units that were manufactured during the period and 8,500 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $40 per unit, and variable manufacturing costs are $95 per unit.

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

Variable costing income from operations is greater than absorption costing.Variable costing income from operations is less than absorption costing.

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

2.

Analyzing Income under Absorption and Variable Costing

Variable manufacturing costs are $83 per unit, and fixed manufacturing costs are $55,800. Sales are estimated to be 5,300 units.

If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar.

a. How much would absorption costing income from operations differ between a plan to produce 5,300 units and a plan to produce 6,200 units? $fill in the blank 1

b. How much would variable costing income from operations differ between the two production plans? $fill in the blank 2