During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead $5 per unit $3 per unit $4 per unit $189,000 per year. he company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at year-end. Income calculated under va osting is determined to be $325,000. How much income is reported under absorption costing? Multiple Choice $220,000 $514,000 $374,500 $275,500