CJ Toys started 2017 with no inventories. During the year, their expected and actual production was 27,000 units, of which they sold 24,300 units at $70 each. Cost data for the year is as follows EEB (Click the icon to view the cost data) Calculate CJ Toys 'operating income under (a) variable costing, and (b) absorption costing. Explain why operating income differs under the two approaches. Data Table Manufacturing costs incurred: $ 530,000 $ 337,500 Variable: Operating income Absorption costing treats fixed manufacturing cost as a CJ Toys has cost of sper unit. So the total fixed manufacturing cost in ending inventory under absorption costing is sSince these costs are inventoried under Fixed: Marketing costs incurred: while variable costing treats it as a Variable: 124,500 units in ending inventory. Under absorption costing, these units have a fixed manufacturing Fixed: $76,300 costing, and not expensed as they would Print Done be under costing, operating income is under absorption costing by $ Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later