Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 55,000 units and sold 50,000 units.

Required information [The foir'owmg information applies to the questions displayed below} Diego Company manufactures one product that is sold for $72 per uniL The following information pertains to the company's rst year of operations in which it produced 55,000 units and sold 50,000 units. variable costs per unit: Manufacturing: Direct materials $ 23 Direct labour 5 14 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $770,000 Fixed selling and administrative expenses $607,000 \\. "I. lWhat is the amount ofthe difference between the variable costing and absorption costing net operating incomes {losses}? Variable costing net operating income (loss) 3; (27,000) Ieduct: Fitted manufacturing overhead cost deferred in inventory under absorption costing _ Absorption costing net operating income (loss)