Manta Ray Company manufactures diving masks with a variable cost of $20. The masks sell for $29. Budgeted fixed manufacturing overhead for the most recent year was $791,700. Actual production was equal to planned production 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. (Do not round intermediate calculations.) 1. Production 2. Production 3. Production Sales Sales Sales 101,500 units 99,400 units 91,000 units 96,100 units 79,000 units 79, 000 units 16,380 costing 2. Variable costing 3. under both