What factor is the cause of the difference between operating income computed using absorption costing and operating income computed using variable costing? Multiple Choice Absorption costing includes all variable manufacturing costs in product costs, but variable costing considers variable manufacturing costs to be period costs Absorption costing considers all manufacturing costs in the determination of operating income, whereas variable costing considers only prime costs None of the answer choices is correct Absorption costing allocates fixed manufacturing costs between cost of goods sold and inventories, and variable costing considers all fod manufacturing costs os period costs Which of the following is normally included in product cost under the variable costing method? Multiple Choice Direct materials cost, direct labour cost, but NOT manufacturing overhead cost. Prime cost but NOT conversion cost. Prime cost and all conversion cost Direct materials cost direct labour cost, and variable manufacturing overhead cost. Last year, fixed manufacturing overhead costs were $30,000, variable production costs were $48.000, fored selling and administration costs were $20,000, and variable selling administrative expenses were $9,600. There was no beginning inventory. During the year, 3.000 units were produced and 2.400 units were sold at a price of $40 per unit. Under variable costing, what would be the operating income foss)? Multiple Choice $4.000 o o 1544001 o $6.000 1$2.000