The beginning inventory is 13,600 units. All of the units that were manufactured during the period and 13,600 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $50 per unit, and variable manufacturing costs are $101 per unit.

Determine whether variable costing operating income is less than or greater than absorption costing operating income.

Variable costing operating income is greater than absorption costing.Variable costing operating income is less than absorption costing.

b. Determine the difference in variable costing and absorption costing operating income. $fill in the blank 2