Blanca Bicycle Company manufactures mountain bikes with a variable cost of $2.700. The bicycles sell for $3,450 each. Budgeted fixed manufacturing overhead for the most recent year was $12.700,000. 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 Bales 2. Production sales 3. Production Bales 23,700 white 20.400 units 14.000 units 14,000 units 15. 550 units 10, 650 unit Answer is complete but not entirely correct. Income Higher Under Amount of (Method) Difference Virable costing $ 2.200612 Same under both O Absorption costing 258 731 1 2 3