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Manta Ray Company manufactures diving masks with a variable cost of $30. The masks sell for $39. Budgeted fixed manufacturing overhead for the most recent

Manta Ray Company manufactures diving masks with a variable cost of $30. The masks sell for $39. Budgeted fixed manufacturing overhead for the most recent year was $696,000. 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 92,800 units
Sales 91,300 units
2. Production 80,000 units
Sales 86,100 units
3. Production 81,000 units
Sales 81,000 units

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