Required information Exercise 7.3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3) [The following information applles to the questions disployed below] Jorgarisen Lighting. Incorporated, nanufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for extemal reports to shareholders, creditors, and the government The company has provided the following data: The company's fixed manufacturing overheed per unit was constant at $560 for all three years. Exercise 7.3 (Algo) Part 2 2. Assume in Year 4 that the company's variable costing net operating income was $240.000 and its absorption costing net operating income was $300,000 a Did inventories increase or decrease during rear 4 ? increase Decrease b. How much fixed manufocturing overhead cost was deferred or released from inventory during Year 4