Q 8.48: A manufacturing company prepared two versions of their income statement at the end of the year. The income statement prepared using absorption costing showed net income before tax of $66,388. The income statement prepared using variable costing showed net income before tax of $88,366. What does this suggest? A Sales exceeded production levels for the period. B Production levels exceeded sales, and $21,978 of fixed manufacturing costs were deferred in ending inventory under absorption costing. Someone made an error because variable costing net income is always less than absorption costing net income. D Sales exceeded production levels, and $21,978 of fixed manufacturing costs were deferred in ending inventory under variable costing