Assume in Year $4$ the company's variable costing net operating income was $$250,000$ and its

absorption costing net operating income was $$280,000.$

a$.$ Did inventories increase or decrease during Year $4?$

b$.$ How much fixed manufacturing overhead cost was deferred or released from inventory during Year

$4?$

Complete this question by entering your answers in the tabs below.

Required $2$a

Did inventories increase or decrease during Year $4?$

Did inventories increase or decrease during Year $4?$

How much fixed manufacturing overhead cost was deferred or released from inventory during Year $4?$