Chap 7: Quiz (3 pts) i Saved Help Save & Exit 5 Krepps Corporation produces a single product. Last year, Krepps manufactured 32,210 units and sold 26,700 units. Production costs for the year were as follows: eBook Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $241,575 $157,829 $251, 238 $418,730 Sales totaled $1,241,550 for the year, variable selling and administrative expenses totaled $138,840, and fixed selling and administrative expenses totaled $199,702. 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 $27,550 lower than under absorption costing. Me Grow HIE