Manta Ray Company manufactures diving masks with a variable cost of $25. The masks sell for $34. Budgeted fixed manufacturing overhead for the most recent year was $774,000. 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	96,750	units
	Sales	94,650	units
2.	Production	86,000	units
	Sales	92,700	units
3.	Production	82,200	units
	Sales	82,200	units

	Income Higher Under (Method)	Amount of Difference
1.
2.
3.