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During the last year, an entity’s total variable production costs were $14795, and its total fixed...

During the last year, an entity’s total variable production costs were $14795, and its total fixed manufacturing overhead costs were $6894. The entity produced 5049 units during the year and sold 4550 units. There were no units in the beginning inventory. Which of the following statements is true?

Select one:

a. The net income under absorption costing for the year will be $756 lower than net income under variable costing.

b. The net income under absorption costing for the year will be $681 lower than net income under variable costing.

c. The net income under absorption costing for the year will be $681 higher than net income under variable costing

d. The net income under absorption costing for the year will be $756 higher than net income under variable costing

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