Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders. creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) Variable costing net operating income 210 160 $300,000 160 190 $279,000 190 220 $260.eee The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income $ 300,000 $ 279,000 $ 260,000 Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income $ 295,800 $ 276,800 2. Assume In Year 4 that the company's variable costing net operating income was $250,000 and its absorption costing net operating income was $290,000 a. Did inventories increase or decrease during Year 4? Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Fixed manufacturing vorhead con Inventory during Year