8 Exercise 8-24 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 8-4) Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,700. The bicycles sell for $2,450 each. Budgeted 5 fixed manufacturing overhead for the most recent year was $11,700,000. Planned and actual production for the year were the same. points Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating eBook income under the two methods. Treat each condition as an independent case. (Round intermediate calculations to 2 decimal places References 1. Production 22, 700 units Sales 26, 400 units 2. Production 12, 000 units Sales 12, 000 units 3. Production 12, 050 units Sales 10, 150 units Income Higher Under (Method) Amount of Difference 1. Variable costing 2 Same under both 3 Absorption costing