Variable Costing-Production Exceeds Sales Fixed manufacturing costs are $28 per unit, and variable manufacturing costs are $84 per unit. Production was 142,000 units, while sales were 133,480 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. Variable costing operating income is less than absorption costing. b. Determine the difference in variable costing and absorption costing operating income. x Feedback Check My Work a. Recall that when units manufactured exceed the units sold, the variable costing operating income will be less than it is for absorption costing. Similarly, when the units sold is greater than the units manufactured, the variable costing income will be greater than it is for absorption costing. b. (Production units - Sales units) x Fixed costs per unit = Difference between variable and absorption costs.