Variable-Costing and Absorption-Costing Income Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows: Variable costs per unit: Direct materials $ 2.85 Direct labor $ 1.92 Variable overhead $ 1.60 Variable selling Fixed costs per year: $0.90 Fixed overhead $180,000 Selling and administrative $ 96,000 During the year, Borques produced 200,000 wooden pallets and sold 204,300 at 59 each. Borques had 8,200 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual costing system is used for product costing. 4. Calculate variable-costing operating income. 5. Suppose that Borques Company had sold 196,700 pallets during the year. What would absorption-costing operating income have been? What would variable-costing operating income