Required information [The following information applies to the questions displayed below) Innerspace Incorporated produces drones. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 200 160 189 Ending (units) 182 Variable costing net operating incone $300,000 $279,000 $260,000 16 24a The company's fixed manufacturing overhead per unit was constant at $500 for all three years. 2. Assume in Year 4 that the company's variable costing net operating income was $250.000 and its absorption costing net operating Income was $310,000 a. Did Inventories increase or decrease during Year 4? Increase Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Fored manufacturing overhead cost Inventory during Your 4