Variable CostingProduction Exceeds Sales

Fixed manufacturing costs are $35 per unit, and variable manufacturing costs are $105 per unit. Production was 121,000 units, while sales were 114,950 units.

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

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