The fixed overhead budgeted for Ranier Industries at an expected capacity of 500,000 units is $1,500,000.
Variable costing is internally, and the net income is adjusted to an absorption costing net income
at year-end. Data collected over the last three years show the following:
					First Year	Second Year	Third Year
Units produced					502,000	498,000	496,000
Units sold					496,000	503,000	496,000
Net income - (variable costing)					$ 500,000	$ 521,000	$ 497,000

Determine the adjustment each year to convert the variable costing income to absorption costing net income for each year.

	Amount	Units	Rate
Budgeted fixed overhead per unit	*	*	*

	First Year	Second Year	Third Year
Net income (variable costing)	*	*	*
Adjustment to absorption costing:
First Year	*
Second Year		*
Third Year			*
Absorption costing net income	*	*	*

* =cells that need answers