A. $65,390 higher than under absorption costingB. $31,689 higher than under absorption costingC. $31,689 lower than under absorption costingD. $ 65,390 lower than under absorption costing

Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units. Production costs for the year were as follows: Direct materials $265, 468 Direct labor $171, 157 Variable manufacturing overhead $300, 398 Fixed manufacturing overhead $454, 090 Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, and fixed selling and administrative expenses totaled $261,975. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be: Multiple Choice $65,390 higher than under absorption costing. $31,689 higher than under absorption costing