Absorption costing does not distinguish between variable and fixed costs. All manufacturing cost Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. Th Saxon, Inc. Variable Costing Income Statement For the Year Ended December 31 F cliewk thy War: Deview the detinitions of the items in the table, and think backwards from one of the income statements to get the desired values. Manufacturing Decisions inefficiencies, tach decision-making situation should be carefully analyzed in deciding whether absorption or variable costing reporting would be more useful. All costs are controllable in the long run by someone within a business. For a given level col managciment, costs may be controllable costs or noncontrollable costs. and the sales levels are the same, Complete questions (1)-(4) that follow. If the answer is zero, enter 070. units higher and add that information to the table. Assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same at both production levels