Sea Star Company manufactures diving masks with a variable cost of $204. The masks sell for $370 Budgeted fixed manufacturing overhead for the most recent year was $2,640,000. 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 23.200 units 2. Production 10,400 units 10,400 units 3. Production 11,000 units units Sales Sales Sales 9,200 Income Higher Under (Method) Amount of Difference 1. Variable costing 2. Same under both 3. Absorption costing