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 $22.00.Additional data for the month of April 2017 are as follows:
$$\begin{array} { | l | c |l| } \hline \text { Direct materials } & \$ 4.00& \text { per unit } \\\hline \text { Direct labour } & \$ 8.00& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20,000 &\text { per month } \\\hline \text { Fixed manufacturing overhead } & \$ 14,000 &\text { per month } \\\hline \text { Operating expenses } & \$ 21,000& \text { per month } \\\hline & \\\hline \text { Beginning inventory } & 0 &\text { units } \\\hline \text { Units produced } & 8,000& \text { units } \\\hline \text { Units sold } & 7,500& \text { units } \\\hline \text { Ending inventory } & 500& \text { units } \\\hline\end{array}$$
Which of the following statements is true?

A) Absorption costing produces operating profit that is $12,750 higher than variable costing.
B) Absorption costing produces operating profit that is $875 lower than variable costing.
C) Absorption costing produces operating profit that is $875 higher than variable costing.
D) Absorption costing produces operating profit that is $12,750 lower than variable costing.