Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units. Production costs for the year were as follows:

Direct materials$265,468Direct labor$171,157Variable manufacturing overhead$300,398Fixed manufacturing overhead$454,090

Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, and fixed selling and administrative expenses totaled $261,975. 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: