TB MC Qu. 8-201 (Algo) Krepps Corporation produces ... Krepps Corporation produces a single product. Last year, Krepps manufactured 33,910 units and sold 28,100 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $247,543 $176,332 $284, 844 $474,740 Sales totaled $1,405,000 for the year, variable selling and administrative expenses totaled $148.930. and fixed selling and administrative expenses totaled $247.543. 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 $81,340 higher than under absorption costing 0 $35,441 lower than under absorption costing $35,441 higher than under absorption costing