21.

ABC Manufacturing Company incurred the following costs to produce 206,000 units of its only product during its first year of operations:

Direct materials	$158,620
Direct labor	$98,880
Variable manufacturing overhead	$210,120
Fixed manufacturing overhead	$432,600

ABC also incurred the following costs in the sale of 183,000 units of product during its first year:

Variable selling and administrative	$73,200
Fixed selling and administrative	$281,820

Assume that direct labor is a variable cost. If ABC's variable costing net operating income for this first year is $398,600, what would its absorption costing net operating income be for this first year?

A. $450,810

B. $446,900

C. $350,300

D. $499,110