Absorption vs. variable costing Reese's Tot Toy Boxes uses variable costing to manage its internal operations. The following data relate to the company's first year of operation, when 30,000 units were produced and 25,200 units were sold. Variable Costs Per Unit Direct material $50.00 30.00 Direct labor Variable overhead 14.00 Variable selling costs 12.00 Total Fixed Costs Selling and administrative $1,500,000 Manufacturing $600,000 How much higher (or lower) would the company's first-year net income have been if absorption costing had been used rather than variable costing? $ 1 Higher under absorption costing - Check