Bianca Bicycle Company manufactures mountain bikes with a variable cost of $2,300. The bicycles sell for $3,050 each. Budgeted fixed manufacturing overhead for the most recent year was $12,300,000. Planned and actual production for the year were the same. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Round intermediate calculations to 2 decimal places.) 1. Production 23,300 units Sales 27,600 units 2. Production 13,200 units Sales 13,200 units 3. Production 12,950 units Sales 10,450 units Income Higher Under (Method) 1. Variable costing 2. Same under both 3. Absorption costing Amount of Difference $ 23 $ 0