Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data: Year 1 Year 2 210 170 $ 290,000 Inventories Beginning (units) Ending (units) Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Year 3 170 200 $ 279,000 200 230 $ 250,000 2. Assume in Year 4 the company's variable costing net operating income was $250,000 and its absorption costing net operating income was $280,000. a. Did inventories increase or decrease during Year 4? b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?

Required information [The following information applies to the questions displayed below] Jorgansen Lighting. Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports. The company provided the following data: The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Assume in Year 4 the company's variable costing net operating income was $250,000 and its absorption costing net operating come was $280,000. a: Did inventories increase or decrease during Year 4 ? . How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4