Manta Ray Company manufactures diving masks with a variable cost of $32. The masks sell for $41. Budgeted fixed manufacturing overhead for the most recent year was $754,400. 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	94,300	units
	Sales	92,600	units
2.	Production	82,000	units
	Sales	88,300	units
3.	Production	81,400	units
	Sales	81,400	units