1. Rhea Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 67 Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year EA EA FA 10 5 3 $ 252,000 4 $ 65,000 Units in beginning inventory Year 1 Year 2 0 1,000 Units produced during the year 9,000 7,000 Units sold during the year 8,000 7,000 Units in ending inventory 1,000 1,000 Required: Determine The net operating income (loss) under absorption costing in Year 2