Carr Company produces a single product. During the past year, Carr manufactured 27,970 units and sold 22,200 units. Production costs for the year were as follows: Fixed manufacturing overhead $335,640 Variable manufacturing overhead $240,542 Direct labor $131,459 Direct materials $234,948 Sales totaled $1,043,400, variable selling expenses totaled $113,220, and fixed selling and administrative expenses totaled $198,587. There were no units in beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the net income for the year would be: $34,043 lower than under absorption costing $34,043 higher than under absorption costing $69,240 lower than under absorption costing $69,240 higher than under absorption costing