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.

State whether income is higher under variable or absorption costing and the amount of the difference in reported opearting income under the two methods. Treat each condition as an independent case.

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

FILL IN BELOW

	Income HigherUnder (Method)	Amount of Difference
1.
2.
3.