2.

Variable CostingProduction Exceeds Sales

Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units.

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 less than absorption costing.

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