0 300 275 Exercise 7-2 (Algo) Variable Costing Income Statement, Explanation of Difference in Net Operating Income (L07-2] Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $840 Selected data for the company's operations last year follow Units in beginning inventory Units produced Units sold Units in ending Inventory 25 Variable costs per unit: Direct materials $100 Direct labor $310 Variable manufacturing overhead $ 30 Variable selling and administrative $35 Fixed costs Fixed manufacturing overhead $ 66,000 Fixed selling and administrative $31.000 The absorption costing income statement prepared by the company's accountant for last year appears below Soles $ 231,000 Cost of goods sold 181,500 Gross margin 49,500 Selling and administrative expense 40,625 Net operating income $3,075 nes Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing Complete this question by entering your answers in the tabs below. Required 2 Required Under absorption costing, how much fixed manufacturing overtiead cont is included in the company's inventory at the end of Last year Fixed manufacturing overhead cost included in Inventory Required 2 > 3 Required i Required 2 Prepare an income statement for last year using variable costing. 18 Point Ida Company Variable Costing Income Statement -Book Pri Defence