Helmers Corporation manufactures a single product. Variable costing net operating income last year was $85,000 and this year was $101,900. Last year, $31,700 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.

What was the absorption costing net operating income last year?

Multiple Choice

• $89,900

• $85,000

• $53,300

• $116,700