Required information Exercise 6.3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO6-3] [The following intormaton applies to the questions displayed below] Jorgansen Lighting. Incorporated, manufactures heavy-duty street lighting systems for municipalibes. The company uses varlable costing for imernal management reports and absorption costing for external reponts to shareholders, creditors. and the government. The company has provided the following data The companys fixed manufacturing overhead per unit was constant at $570 for all thee years. Exercise 6.3 (Algo) Port 2 2. Assume in Year 4 that the company's variable costing net operating income was 5260,000 and its absorption costing net operating income was $290.000 a Did inventones increase or decreast during Year 4? increase Decrease b. How much fixed manufacturing oveheod cost was defened a releosed from inventory during Year 4