Krepps Corporation produces a single product. Last year, Krepps manufactured 31,770 units and sold 26,400 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead 3832 $ 228,744 $ 142,965 $ 247, 806 $ 508,320 pod Sales totaled $1,161,600 for the year, varioble selling and administrative expenses totaled $139,920, and fixed selling and administrative expenses totaled $225,567. There was no beginning inventory. Assume that direct labor is a variable cost. Under varioble costing, the company's net operating income for the year would be: Multiple Choice $31683 higher than under absorption costing, $31,683 lower than under absorption costing. $85,920 lower than under absorption costing 585,920 higher than under absorption costing