pany uses variable costing iu shareholders, creditors, and the government. The cl TWo g inventory its Year 2 Year 3 Year 1 Inventories: Beginning (units) Ending (units) 180 220 $1,080,400 $1.032,400 $996,400 200 170 170 180 Variable costing net operating income r unit was constant at $560 for allthree years The company's fixed manufacturing overhead pe Required I. Determine each year's absorption costing net operating income. Present your answer in the form of a reconciliation report. 2. In Year 4, the company's variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400. Did inventories increase or decrease during Year 42 How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4