Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data: The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 2. Assume in Year 4 the company's variable costing net operating income was $250,000 and its absorption costing net operating income was $300,000. a. Did inventories increase or decrease during Year 4 ? b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4 ? \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes } \\ \hline Variable costing net operating income & & & \\ \hline Add(deduct)fixedmanufacturingoverheaddeferredin(releasedfrom)inventoryunderabsorptioncosting & & & \\ \hline Absorption costing net operating income & & & \\ \hline \end{tabular}