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