Allston Products Sells a Special Kind of Effects Pedal for Musical

Allston Products sells a special kind of effects pedal for musical performers. Each unit sells for $20.00. Additional data for the month of April, 2011, are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 4.00 \text { per unit} \\\hline \text { Direct labor } & \$ 8.00 \text { per unit} \\\hline \text { Variable manufacturing overhead } & \$ 20,000 \text { per month } \\\hline \text { Fixed manufacturing overhead } & \$ 14,000 \text { per month } \\\hline \text { Operating expenses } & \$ 21,000 \text {per month} \\\hline & \\\hline \text { Beginning inventory } & 0 \text { units } \\\hline \text { Units produced } & 8,00 \text { qunits } \\\hline \text { Units sold } & 7,500 \text { units } \\\hline \text { Ending inventory } & 500 \text { units } \\\hline\end{array}$$
-Refer to the table above,Which of the following statements is true?

A) Absorption costing produces operating income that is $875 higher than variable costing.
B) Absorption costing produces operating income that is $875 lower than variable costing.
C) Absorption costing produces operating income that is $13,125 higher than variable costing.
D) Absorption costing produces operating income that is $13,125 lower than variable costing.