Krepps Corporation produces a single product Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $288, 405 $145,899 $288, 405 $542,880 oints 003055 Sales totaled $1,287650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. 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 $27,587 higher then under absorption costing