EX $8-24($Algo$)$ 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 $$1,400.$ The cost per unit remained the same in the current year as in the previous year. The bicycles sell for $$2,150$ each. Budgeted fixed manufacturing overhead for the year is $$11,400,000.$ Planned and actual production for the year were the same.

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.

Note: Round intermediate calculations to $2$ decimal places.

$\backslash$table$[[\backslash$table$[[$Production$],[$units$]],$Sales Units,$\backslash$table$[[$Income Higher Under$],[($Method$)]],$Amount of Difference,$],[1.,22400,25800,$Variable costing,$],[2,11400,11400,$Same under both,$