Lasorsa Corporation Manufactures a Single Product

Multiple Choice

Lasorsa Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $98,000. Last year, $4,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $27,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. What was the absorption costing net operating income last year?

A) $63,000
B) $86,000
C) $90,000
D) $82,000