What is the variable costing net operating income in Year $1$ and in Year $2?$

Reconcile the absorption costing and the variable costing net operating income figures for each year.

Note: Enter any losses or deductions as a negative value.

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes

Year $1$ Year $2$

Variable costing net operating income $($loss$)$

Add $($deduct$)$ fixed manufacturing overhead deferred in $($released from$)$ inventory under absorption costing

Absorption costing net operating income