MC Qu. 83 During its first year of operations, the... During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $363,000. The company produced 33,000 units, and sold 27,000 units, leaving 6,000 units in inventory at year-end. Income calculated under variable costing is determined to be $385,000. How much income is reported under absorption costing