Question 4(1 point)

Reference: 08-11

The following data pertain to one month's operations of Whitney, Inc.:

Units in beginning inventory0Units produced9,000Units sold8,000Variable costs per unit:Manufacturing$10Selling and administrative$6Fixed costs in totalManufacturing$18,000Selling and administrative$27,000

For the month noted, what was the relationship between the operating income under variable costing as opposed to under absorption costing?

Question 4 options:

A)

Higher than operating income under absorption costing.

B)

Lower than operating income under absorption costing.

C)

The same as operating income under absorption costing.

D)

The relationship between variable costing and absorption costing operating income cannot be determined with the data provided.