Helmers Corporation Manufactures a Single Product

Multiple Choice

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.
-What was the absorption costing net operating income this year?

A) $81,000
B) $83,000
C) $115,000
D) $123,000