Kaaua Corporation has provided the following data for its two most recent years of operation:

Selling price per unit$83Manufacturing costs:Variable manufacturing cost per unit produced:Direct materials$13Direct labor$7Variable manufacturing overhead$4Fixed manufacturing overhead per year$396,000Selling and administrative expenses:Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$72,000

Year 1Year 2Units in beginning inventory02,000Units produced during the year12,00011,000Units sold during the year10,0009,000Units in ending inventory2,0004,000

Which of the following statements is true for Year 2?

• The amount of fixed manufacturing overhead deferred in inventories is $78,000
• The amount of fixed manufacturing overhead deferred in inventories is $534,000
• The amount of fixed manufacturing overhead released from inventories is $78,000
• The amount of fixed manufacturing overhead released from inventories is $534,000