Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Production Cost Data Direct materials $153,000 Direct labor $110,500 Variable manufacturing overhead $204,000 Fixed manufacturing overhead $255,000 Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. 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 _______ than under absorption costing. A. $60,000 higher B. $108,000 higher C. $108,000 lower D. $60,000 lower ***Please SHOW HOW to get the answer***