[The following information applies to the questions displayed below.) Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. 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 3 217 164 197 Inventories: Beginning (units) Ending (units) Variable costing net operating income 197 225 164 $298.400 $274,200 $250,900 The company's fixed manufacturing overhead per unit was constant at $557 for all three years. 3. value: 2.00 points Required information Required: 1. Determine each year's absorption costing net operating income. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income 0S 0S 0 Hints References eBook & Resources Hint #1 Check my work 2. In Year 4, the company's variable costing net operating income was $249,900 and its absorption costing net operating income was $279,500. a. Did inventories increase or decrease during Year 4? Decrease Increase b. How much fixed manufacturing overhead cost was deferred in or released from inventory during Year 4? Fixed manufacturing overhead cost inventory during Year 4