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 of 2,600 units.

 Units sold total of 1,800 units.

 The 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.)

 

O A. higher by $5,664 O B. lower by $5,664 O C. higher by $1,416 O D. lower by $1,416