Fixed manufacturing costs are $40 per unit, and variable manufacturing costs are $120 per unit. Production was 130,000 units, while sales were 124,800 units. 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. $fill in the blank 2

Question

Variable Costing—Production Exceeds Sales

Fixed manufacturing costs are $40 per unit, and variable manufacturing costs are $120 per unit. Production was 130,000 units, while sales were 124,800 units.

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.
$fill in the blank 2

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Marginal Costing

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