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Oak RidgeManufacturing produces snow shovels. The selling price per snow shovel is $33.00. There is no beginning inventory. Costs involved in production are: Direct material

Oak RidgeManufacturing produces snow shovels. The selling price per snow shovel is $33.00. There is no beginning inventory.

Costs involved in production are:

Direct material

$5.00Direct labor

3.00Variable manufacturing overhead

4.00Total variable manufacturing costs per unit

$12.00Fixed manufacturing overhead per year

$119,340

In addition, the company has fixed selling and administrative costs of $158,500per year.

During the year,Oak Ridgeproduces45,900snow shovels and sells40,860snow shovels.

Calculate the difference in full costing net income and variable costing net income without preparing either income statement.

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