Krepps Corporation produces a single product. Last year, Krepps manufactured 32,900 units and sold 27,500 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $253, 330 $171,080 $289,520 $592,200 Sales totaled $1168,750 for the year, variable selling and administrative expenses totaled $148,500, and fixed selling and administrative expenses totaled $227,010. 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 $30,780 lower than under absorption costing. $30,780 higher than under absorption costing $97,200 lower than under absorption costing