Variable Costing$-$Sales Exceed Production

The beginning inventory is $10,300$ units. All of the units that were manufactured during the period and $10,300$ units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $$52$ per unit, and variable manufacturing costs are $$95$ per unit.

a$.$ Determine whether variable costing operating income is less than or greater than absofption costing operating income.

Variable costing operating income is greater than absorption costing.

b$.$ Determine the difference in variable costing and absorption costing operating income.