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: Units in beginning inventory Units produced 250 Units sold Unita in ending inventory Variable costs per unit: 230 20 Direct materials 125 Direct labor 335 Variable manufacturing overhead Variable selling and administrative Fixed costa: 55 %24 30 Pixed manufacturing overhead rixed selling and administrative $ 75,000 $15,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 218,500 187, 450 31,050 21,900 Sales Cont of goods sold Gross margin Selling and administrative expense ces Net operating income 9,150 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. 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 Req 2A Reg 2B Prepare an income statement for last year using variable costing. Polar Industries Variable Costing Income Statement Sales Variable expenses: 218,500 Variable cost of goods sold 218,500 218,500