explain the reason for the difference in net income between a and b 626698

Costner Company uses an absorption costing system in accounting for the single product it manufactures. The following selected data are for the year  2009:

Sales (10,000 units)	$360,000
Direct materials used (variable cost)	129,600
Direct labor costs (variable cost)	43,200
Variable manufacturing overhead	12,960
Fixed manufacturing overhead	17,280
Variable selling and administrative expenses	21,600
Fixed selling and administrative expenses	72,000

The company produced 12,000 units and sold 10,000 units. Direct materials and  direct labor are variable costs. One unit of direct material goes into each unit of  finished goods. Overhead rates are based on a volume of 12,000 units and are USD 1.08 and USD 1.44 per unit for variable and fixed overhead, respectively. The ending   inventory is the 2,000 units of finished goods on hand at the end of 2009. There was  no inventory at the beginning of 2009.

a. Prepare an income statement for 2009 under variable costing.

b. Prepare an income statement for 2009 under absorption costing.

c. Explain the reason for the difference in net income between a and b.