During its first year of operations, the McCormick Company incurred the following manufacturing costs:

The company produced 25,000 units, and sold 20,000 units, leaving 5,000 units in inventory at year-end. Income calculated under variable costing is determined to be $315,000. How much income is reported under absorption costing?

Direct materials Direct labor Variable overhead Fixed overhead $5 per unit $3 per unit $4 per unit $250,000 per year