Polar Industries manufactures a commerical size refrigerator for restaurants and commercial kitchens. The commercial refrigerators are sold for $980. Selected data for the company's operations last year follow: 0 280 265 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 $ $ $ $ 150 370 45 30 $ 70,000 $ 30,000 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 $ 259,700 215,975 43,725 37,950 $ 5,775 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? Reg 1 Req 2A Req 2B Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? Fixed manufacturing overhead cost included in inventory Prepare an income statement for last year using variable costing. Polar Industries Variable Costing Income Statement 0 0 0 0 $ 0 What is the amount of the difference in net operating income between the two costing methods? Amount of the difference in net operating income