During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead $4 per unit $2 per unit $3 per unit $192,000 per year The company produced 24,000 units, and sold 17,000 units, leaving 7,000 units in inventory at year-end. Income calculated under variable costing is determined to be $340,000. How much income is reported under absorption costing? Multiple Choice $226,000 $284,000 $532,000 $396,000 $340,000