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 this year?

A) $125,000
B) $72,000
C) $75,000
D) $121,000