Which of the following statements about absorption costing and variable costing is FALSE? The income statement prepared in variable costing emphasizes cost behavior. O A major difference between absorption costing and variable costing for the purpose of product costing is the treatment of fixed overhead costs. Under variable costing, fixed overhead costs are inventoried (capitalized) as product costs. Under absorption costing, selling and administrative costs are treated as period costs. Loring Company has incurred the following operating costs for the month: Variable costs per unit: Direct materials Direct labor Variable overhead Variable selling $5.00 $3.00 $2.00 $1.00 Fixed costs per month: Fixed overhead .......... Fixed selling & administrative $4,000 $3,600 Fixed overhead is applied (assigned) to each unit of product based on the budgeted production of 2,000 units. During the month, 2,000 units were produced. Loring started the month with 300 units in beginning inventory. A total of 2,100 units were sold during the month at a price of $20. What is operating income that needs to be reported under absorption costing? O $12.400 O $11,100 $12,300 O $13,200