Manta Ray Company manufactures diving masks with a variable cost of $27. The masks sell for $36. Budgeted fixed manufacturing overhead for the most recent year was $783,200. 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 2. Production Sales 3. Production Sales 97, 900 units 95, 600 units 88,000 units 94, 900 units 82, 600 units 82, 600 units Amount of Difference Income Higher Under (Method) 1. Absorption costing 2. Variable costing 3. Same under both