Worrel Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:

Variable costing net operating income, last year

Variable costing net operating income, this year

Fixed manufacturing overhead costs deferred in inventory under absorption costing,

last year

Fixed manufacturing overhead costs released from inventory under absorption

costing, this year

Required:

a$.$ Determine the absorption costing net operating income last year.

b$.$ Determine the absorption costing net operating income this year.

$$88,000$

$$109,000$

$$3,700$

$$12,700$