Jupiter Corporation incurred fixed manufacturing costs of $17,000 during 2020. Other information for 2020 includes:

The budgeted denominator level is 2,400 units.

Units produced total 2,600 units.

Units sold total 1,800 units.

Variable cost per unit is $6

Beginning inventory is zero.

The fixed manufacturing cost rate is based on the budgeted denominator level. The operating income using variable costing will be ________ as compared to the operating income under absorption costing. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

A.

higher by $5,664

B.

lower by $5,664

C.

higher by $1,416

D.

lower by $1,416