Manta Ray Company manufactures diving masks with a variable cost of $20. The masks sell for $29. Budgeted fixed manufacturing overhead for the most recent year was $791,700. 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 101,500 units 99,400 units 91,000 units 96,100 units 79,000 units 79,000 units X Answer is complete but not entirely correct. Amount of Difference Income Higher Under (Method) Absorption costing Variable costing 1. $ 16,380 2. 44,730 X 3. Same under both $ 0