The fixed overhead budgeted for MacBeth Co. at an expected capacity of 500,000 units is $1,500,000. Variable costing is used 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:

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

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Second First Year Yea Third Year 502,000 498,000 496,000 496,000 503,000 496,000 $500,000 $521,000 $497,000