Required: 1. Determine each year's absorption costing operating income. Present your answer in the form of a reconciliation report. Absorption Costing Operating Incomes Year 1 Year 2 Year 3 Variable costing operating income Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income 2-a. In year 4, the company's variable costing operating income was $245,200 and its absorption costing operating income was $212,700. Did inventories increase or decrease during year 4? Increase Decrease 2-b. How much fixed manufacturing overhead cost was deferred or released from inventory during year 4? Fixed manufacturing overhead cost inventory during year 4