Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $45 per unit, and variable manufacturing costs are $135 per unit. Production was 105,000 units, while sales were 99,750 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.
Get Answers For Free
Most questions answered within 1 hours.