Last month, Toro Tools produced 6,000 wheelbarrows and sold 6,200 at a price of $62 each. Toro had 900 wheelbarrows in beginning inventory. Manufacturing costs consisted of direct materials of $84,000, direct labor of $27,300, variable manufacturing overhead of $21,000, and fixed manufacturing overhead of $120,000. General and administrative fixed costs totaled $32,000. Variable selling costs were $1 per wheelbarrow. Assume the same unit costs in all years.

1. Calculate Toro Tools’ net income using full costing.
2. Calculate Toro Tools’ net income using variable costing.