Carr Company produces a single product. Last year, Carr manufactured 26,030 units and sold 20,700 units. Production costs for the year were as follows: $494,570 Fixed manufacturing overhead Variable manufacturing overhead Direct labor Direct materials $210,843 $143,165 $192,622 Sales were $983,250, for the year, variable selling and administrative expenses were $120,060, and fixed selling and administrative expenses were $161,386. 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: $26,650 lower than under absorption costing $101,270 higher than under absorption costing $26,650 higher than under absorption costing $101,270 lower than under absorption costing