HW Chapter 7 i Saved Help Save & Exit Submit Check my work 4 Required information Part 2 of 2 The following information applies to the questions displayed below.] 16.66 Jorgansen Lighting, Incorporated, manufactures heavy-duty points street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, eBook creditors, and the government. The company has provided the following data: Hint Year 1 Year 2 Year 3 Print Inventories Beginning (units) 200 156 180 References Ending (units) 150 180 230 Variable costing net operating income $ 290,000 $ 279,060 $ 260, 060 The company's fixed manufacturing overhead per unit was constant at $570 for all three years. 2. Assume in Year 4 that the company's variable costing net operating income was $240,000 and its absorption costing net operating income was $290,000. a. Did inventories increase or decrease during Year 4? O Increase O Decrease b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Fixed manufacturing overhead cost inventory during Year 4 Mc Graw