Krepps Corporation produces a single product. Last year, Krepps manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows: 13 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 234, 234 $ 142,974 $ 258,570 $ 395,460 * 01:41:23 Sales totaled $1,207,650 for the year, variable selling and administrative expenses totaled $136,950, and fixed selling and administrative expenses totaled $185,562. There was no beginning inventory. Assume that direct labor is a variable cost. cBook Under variable costing, the company's net operating income for the year would be: Multiple Choice $71,760 lower than under absorption costing o $27,048 lower than under absorption costing. O $71,760 higher than under absorption costing. O $27,048 higher than under absorption costing