During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $279,000. The company produced 31,000 units, and sold 20,500 units, leaving 10,500 units in inventory at year-end. Income calculated under variable costing is determined to be $375,000. How much income is reported under absorption costing? $375,000 $320,000 $654,000 $280,500 $469,500