Requirement 2. Is absorption costing income higher or lower than variable costing income? Explain. Absorption costing income is than variable costing income. The difference stems from two offsetting forces. Absorption costing Variable costing expenses all fixed manufacturing overhead in the period incurred. But absorption costing variable costing expenses fixed manufacturing overhead in the period when the related units are sold. Thus, absorption costing variable costing shifts the timing when the fixed manufacturing overhead is expensed