Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Stiller Corporation incurred fixed manufacturing costs of $12,000 during 2011. Other information for 2011 includes:
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
-Operating income using absorption costing will be ________ than operating income if using variable costing.

A) $4,800 higher
B) $4,800 lower
C) $1,800 higher
D) $7,200 lower