Harris Corporation produces a single product. Last year, Harris manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows: Fixed manufacturing overhead $395,460 Variable manufacturing overhead $258,570 Direct labor $142,974 Direct materials $234,234 Sales were $1,207,650, for the year, variable selling and administrative expenses were $136,950, and fixed selling and administrative expenses were $185,562. 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: $27,048 lower than under absorption costing $27,048 higher than under absorption costing $71,760 higher than under absorption costing $71,760 lower than under absorption costing