Krepps Corporation produces a single product. Last year, Krepps manufactured 33,110 units and sold 27,600 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead $248,325 $175,483 $294,679 $463,540 Fixed manufacturing overhead Sales totaled $1,242,000 for the year, variable selling and administrative expenses totaled $140,760, and fixed selling and administrative expenses totaled $221,837. 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 $30,305 lower than under absorption costing. $30,305 higher than under absorption costing. $77,140 lower than under absorption costing. $77,140 higher than under absorption costing. ED < Prev 8 of 46 www Next >