Variable CostingSales Exceed Production

The beginning inventory is 20,100 units. All of the units that were manufactured during the period and 20,100 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $57 per unit, and variable manufacturing costs are $101 per unit.

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

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

2)

Analyzing Income under Absorption and Variable Costing

Variable manufacturing costs are $121 per unit, and fixed manufacturing costs are $71,000. Sales are estimated to be 5,500 units.

If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar.

a. How much would absorption costing income from operations differ between a plan to produce 5,500 units and a plan to produce 7,100 units? $

b. How much would variable costing income from operations differ between the two production plans? $