Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,800. The bicycles sell for $2,550 each. Budgeted fixed manufacturing overhead for the most recent year was $11,800,000. 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	22,800	units
	Sales	26,600	units
2.	Production	12,200	units
	Sales	12,200	units
3.	Production	12,200	units
	Sales	10,200	units