Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administratlive 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: Multiple Choice $28,350 lower than under absorption costing $28,350 higher than under absorption costing. $78,750 lower than under absorption costing. $78,750 higher than under absorption costing