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 Sales 101,500 units 99,400 units 1. 2. 2. Production 91,000 units Sales 96,100 units 3. Production 79,000 units Sales 79,000 units 3. Income Higher Under (Method) Amount of Difference