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	97,900	units
	Sales	95,600	units
2.	Production	88,000	units
	Sales	94,900	units
3.	Production	82,600	units
	Sales	82,600	units