Polar Industries manufactures a commerical size refrigerator for restaurants and commercial kitchens. The commercial refrigerators are sold for $896. Selected data for the company's operations last year follow: 0 11,000 7,000 4,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs : Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 140 480 62 23 $920,000 $ 730,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. 1 Absorption costing unit product cost Variable costing unit product cost 2. Required information The following information applies to the questions displayed below.] Innerspace Incorporated produces drones. 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 220 160 $290,000 160 180 $279,000 180 240 $260,000 The company's fixed manufacturing overhead per unit was constant at $500 for all three years. Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income