Krepps Corporation produces a single product Last year, Krepps manufactured 27,540 units and sold 22,200 units. Production costs for the year were as follows: Sales totaled $1,098,900 for the year, variable selling and administrative expenses totaled $115,440, and fixed selling and administrative expenses totaled \$176,256. 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: Muaiple Croice 550740 higher than under absorption costing $58,740 bmer than under abrorption costing