Krepps Corporation produces a single product. Last year, Krepps manufactured 30140 units and sold 24,600 units. Production costs for the year were as follows: Direct materials $253,176 Direct labor $147,686 Variable manufacturing overhead $223,036 Fixed manufacturing overhead $572,660 Sales totaled $1,242,300 for the year, variable selling and administrative expenses totaled $140,220, and fixed selling and administrative expenses totaled $217,008. 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 Multiple Choice $33,240 lower than under absorption costing $105.260 higher than under absorption costing O $105,260 lower than under absorption costing Sales totaled $1,242,300 for the year, variable selling and administrative expenses tota totaled $217,008. There was no beginning inventory. Assume that direct labor is a varia -4 Tits Under variable costing, the company's net operating Income for the year would be: 3060140 Multiple Choice O $33.240 lower than under absorption costing. O $105,260 higher than under absorption costing $105.260 lower than under absorption costing $33.240 higher than under absorption costing,