Manta Ray Company manufactures diving masks with a variable cost of $22. The masks sell for $31. Budgeted fixed manufacturing overhead for the most recent year was $809,100. 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 2. Production 3. Production Sales Sales Sales 107,880 units 105,580 units 93,000 units 98,300 units 79,400 units 79,400 units Income Higher Under Method Amount of Difference 2