Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $229,600 $134,400 $215,600 $336,000 Sales totaled $1,046,250 for the year, variable selling and administrative expenses totaled $117,000, and fixed selling and administrative expenses totaled $201.600 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 $33,000 lower than under absorption costing. $33,000 higher than under absorption costing $66,000 lower than under absorption costing, $66,000 higher than under absorption costing