Polar Industries manufactures a commerical size refrigerator for restaurants and commercial kitchens. The commercial refrigerators are sold for $870. Selected data for the company's operations last year follow: 0 260 230 30 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 $ $ $ $ 105 325 45 15 $ 65,000 $ 21,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 200,100 166,750 33, 350 24,450 $ 8,900 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Prepare an income statement for last year using variable costing. Polar Industries Variable Costing Income Statement $ 200,100 Sales Variable expenses