onth and a total column, using variable costing. Game Play Variable Costing Income Statement October November Total Revenue 58,800 $ 126,000 $ 184,800 Variable Costs 22,400 48.000 70.400 Contribution Margin 36.400 78,000 114.400 Fixed Costs 22.500 22,500 45.000 Operating Income 13,900 55,500 69,400 Requirement 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating income base In October, the operating income is higher under absorption costing. The primary reason for this is that in absorption costing, the fixed manufacturing overhead costs are distributed across the entire production run as part of the unit cost. Under the absorption costing method, $ 6,500 of fixed manufacturing overhead costs are not expensed and remain in Finished Goods Inventory. In November, the operating income is higher under variable costing. The primary reason for this is because of fixed manufacturing overhead that is contained in the units in ending inventory under ahsomtion costing is not contained in the units of ending inventory under variable costing Ac inventor Etext pages Get more help - search