Lawson Company had the following manufacturing information for the current year. Assume the same per unit costs occurred in the prior year. Units Beginning Inventory units Sold Actual Production Budgeted Production Ending Inventory units Unit Variable Costs 200 475 500 990 500 225 Manufacturing $125.00 Selling and Administrative 75.00 Fixed Costs Manufacturing 120,000 Selling and Administrative 25,000 Selling price 600.00 29 Required: Determine operating income under both full costing and variable costing and explain the difference.