Krepps Corporation produces a single product. Last year, Krepps manufactured 30,140 units and sold 24,600 units. Production costs for the year were as follows: Direct materials Direct labor $253,176 $147,686 Variable manufacturing overhead $223,036 Fixed manufacturing overhead $572,660 Sales totaled $1,242,300 for the year, variable selling and administrative expenses totaled $140,220, and fixed selling and administrative expenses totaled $217,008. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be: