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Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $39 per unit, and variable manufacturing costs are...

Variable Costing—Production Exceeds Sales

Fixed manufacturing costs are $39 per unit, and variable manufacturing costs are $117 per unit. Production was 112,000 units, while sales were 105,280 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.
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