Variable Costing -Sales Exceed Production The beginning inventory is 18,800 units. All of the units that were manufactured during the period and all the units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $42 per unit, and variable manufacturing costs are $84 per unit. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. Variable costing operating income is greater than absorption costing. b. Determine the difference in variable costing and absorption costing operating income. Feedbock F Check My Work a. Recall that when units manufactured exceed the units sold, the variable costing operating income will be less than it is for absorption costing. Similarly, when the units sold is greater than the units manufactured, the variable costing income will be greater than it is for absorption costing. b. Sold units of the beginning inventory x Fixed costs per unit = Difference between variable and absorption costing operating income