Harris Corporation produces a single product. Last year, Harris manufactured 27,970 units and sold 22,200 units. Production costs for the year were as follows:

Fixed manufacturing overhead	$335,640
Variable manufacturing overhead	$240,542
Direct labor	$131,459
Direct materials	$234,948

Sales were $1,043,400, for the year, variable selling and administrative expenses were $113,220, and fixed selling and administrative expenses were $198,587. 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:

A $34,043 lower than under absorption costing

B $34,043 higher than under absorption costing

C $69,240 higher than under absorption costing

D $69,240 lower than under absorption costing