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Week 4 Problem Set i Saved Help 5 Exercise 8-20 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 8-4) 5 Manta Ray

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Week 4 Problem Set i Saved Help 5 Exercise 8-20 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 8-4) 5 Manta Ray Company manufactures diving masks with a variable cost of $22. The masks sell for $31. Budgeted fixed manufacturing points overhead for the most recent year was $809,100. Actual production was equal to planned production. Required: eBook 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.) References 1. Production 107, 880 units Sales 105, 580 units 2. Production 93, 000 units Sales 98, 300 units 3. Production 79, 400 units Sales 79, 400 units Income Higher Under Amount of (Method) Difference 1. Absorption costing $ 32,000 2 Variable costing 19,000 3. Same under both

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