Variable CostingSales Exceed Production

The beginning inventory is 18,500 units. All of the units that were manufactured during the period and 18,500 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $64 per unit, and variable manufacturing costs are $116 per unit.

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

Variable costing income from operations is greater than absorption costing. Variable costing income from operations is less than absorption costing. Variable costing income from operations is greater than absorption costing.

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