Polar Industries manufactures a commerical size refrigerator for restaurants and commercial kitchens. The commercial refrigerators are sold for $950. Selected data for the company's operations last year follow: 0 250 235 15 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 $ $ $ $ 135 345 30 20 $ 65,000 $ 25,000 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 $ 223,250 180,950 42,300 29, 700 $ 12,600 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. Req 1 Req 2A Req 2B Prepare an income statement for last year using variable costing. Polar Industries Variable Costing Income Statement Sales $ 223,250 Variable expenses: $ 31,725 81,075 Variable cost of goods sold Variable selling and administrative expenses $ 7,050 $ 4,700 124,550 98,700 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 0 Net operating income $ 98,700 Req 1 Req 2A Req 2B What is the amount of the difference in net operating income between the two costing methods? Amount of the difference in net operating income