Krepps Corporation produces a single product. Last year, Krepps manufactured 31770 units and sold 26,400 units. Production costs for the year were as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $228,744 $142,965 $247,806 $508,320 Sales totaled $1161600 for the year variable selling and administrative expenses totaled $19920and forced selling and administrative expenses totaled $225 567 There was no beginning inventory Assume that direct laboris a variable cost Under variable costing, the company's net operating income for the year would be Sales totaled $1,161,600 for the year, variable selling and administrative expenses totaled $139,920, and fixed selling and administrative expenses totaled $225,567 There was 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 0 $31683 higher than under absorption costing o $85.920 lower than under absorption costing $85.920 higher than under absorption costing 0 $31,683 lower than under absorption costing