Problem 10 Filters Plus manufactures filters for swimming pools. It uses an absorption costing system and writes off over/under absorbed overhead to cost of goods sold. Overhead is applied to products at the rate of $6.30 per direct labor hour (DLH). Total variable overhead is budgeted at $72,600 and 22,000 hours were expected. The income statement is: FILTERS PLUS Income Statement (Absorption Costing) Year Ending 12/31 Filters Plus had no beginning inventories of filters. The ending inventories as of 12.31 consists of 1,400 filters, each of which required two direct labor hours to manufacture. Required: Calculate Filter Plus's net income under variable costing. (Show calculations and explain the logic of your methodology.)