Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,400. The bicycles sell for $2,150 each. Budgeted fixed manufacturing overhead for the most recent year was $11,400,000. 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	22,400	units
	Sales	25,800	units
2.	Production	11,400	units
	Sales	11,400	units
3.	Production	11,600	units
	Sales	10,000	units

5 points eBook References Exercise 8-24 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 84) Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,400 The bicycles sell for $2,150 each. Budgeted xed manufacturing overhead for the most recent year was $11,400,000. 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 22,400 units Sales 25,800 units 2. Production 11,400 units Sales 11,400 units 3. Production 11,600 units Sales 10,000 units ariable costing Absorption costing 47,080