Krepps Corporation produces a single product. Last year, Krepps manufactured 32.150 units and sold 26,900 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $234, 695 $154,320 $279, 705 $492.250 Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administrative expenses totaled $212,190. 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 Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158.710, and fixed selling and administrative expert Totaled $212,190. 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 $28,350 higher than under absorption costing. O $28.350 lower than under absorption costing $78,750 lower than under absorption costing O $78,750 higher than under absorption costing