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A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 Income under variable costing $

A manufacturer reports the following information below for its first three years in operation.

Year 1 Year 2 Year 3

Income under variable costing $ 78,000 $ 111,000 $ 117,000

Beginning inventory (units) 0 820 510

Ending inventory (units) 820 510 0

Fixed manufacturing overhead per unit $ 8.00 $ 8.00 $ 8.00

Income for year 1 using absorption costing is:

Multiple Choice $78,000. $84,560. $91,120. $108,520. $112,920.

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