Webber, Inc., began operations at the start of the current year, having a production target of 60,000 units. Actual production totaled 60,000 units, and the company sold 95% of its manufacturing output at $50 per unit. The following costs were incurred:

Manufacturing:

Direct materials used $240,000

Direct labor 480,000

Variable manufacturing overhead 360,000

Fixed manufacturing overhead 600,000

Selling and administrative:

Variable $180,000

Fixed 630,000

a. Compute the companys absorption-costing operating income.

b. Compute the companys variable-costing operating income.

c. Reconcile the difference in operating income.