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Sea Star Company manufactures diving masks with a variable cost of $206. The masks sell for $380. Budgeted fixed manufacturing overhead for the most recent

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Sea Star Company manufactures diving masks with a variable cost of $206. The masks sell for $380. Budgeted fixed manufacturing overhead for the most recent year was $2,860,000. 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 1. Production 20,000 units 23,300 units 2. Production 10,600 units 10,600 units 3. Production 11,000 units Sales 9,300 units Sales Sales Income Higher Under Amount of Difference (Method)

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