Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Veach Corporation incurred fixed manufacturing costs of $6,000 during 2015. Other information for 2015 includes:
The budgeted denominator level is 1,000 units.
Units produced total 750 units.
Units sold total 600 units.
Beginning inventory was zero.
The company uses variable 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 variable costing will be ________ than operating income if using absorption costing.

A) $2,400 higher
B) $2,400 lower
C) $3,600 higher
D) $900 lower