Sea Star Company manufactures diving masks with a variable cost of $213. The masks sell for $415. Budgeted fixed manufacturing overhead for the most recent year was $3,630,000. 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 22,000 units 23,650 units 2. Production 11,300 units 11,300 units 3. Production 11,000 units 9,650 units Sales Sales Sales Amount of Difference Income Higher Under (Method) 1. Variable costing 2. Same under both 3. Absorption costing