The Following Information Pertains to Nute Corporation -Refer to the Figure

Multiple Choice

The following information pertains to Nute Corporation:
$$\begin{array} { l r } \text { Beginning inventory } & 1,000 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & \$ 40 \\\text { Direct materials per unit } & 20 \\\text { Variable overhead per unit } & 10 \\\text { Fixed overhead per unit } & 30 \\\text { Variable selling and administrative costs per unit } & 6 \\\text { Fixed selling and administrative costs per unit } & 14\end{array}$$
-Refer to the Figure.What is the relationship between absorption costing net income and variable costing net income?

A) Absorption costing net income is $150,000 less.
B) Absorption costing net income is $150,000 greater.
C) Absorption costing net income is $240,000 less.
D) Absorption costing net income is $240,000 greater.