Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income, and (b) the difference in variable costing and absorption costing operating income.

a. Less

b. $739,200

Explanation:

a. As we know that

Under the variable costing, all the variable cost i.e direct material, direct labor, variable manufacturing overhead are considered

And, under the absorption costing, all the fixed cost and the variable cost are considered i.e direct material, direct labor, variable manufacturing overhead,  fixed variable manufacturing overhead, fixed and variable selling and admin expenses are considered

So based on this, the variable costing operating income is less than the absorption costing due to the fixed cost

b. And, the difference amount is

= [67,200 Units – 50,400 Units] × $44 per unit

= 16,800 Units × $44 per unit

= $739,200

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

ell really, the setting was in franklin and lincoln visits franklin even after he moved to columbus, and he went to school