0 Exercise 6-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income (LO6-2] Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 200 Units sold 180 Units in ending inventory 20 Variable costs per unitt Direct materials 5 120 Direct labor $ 340 Variable manufacturing overhead $40 Variable selling and administrative $ 30 Tixed costs Fixed manufacturing overhead $ 56,000 Fixed selling and administrative $ 24,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $ 178,200 Cont of goods sold 40,400 GEO margin 37.800 Selling and administrative expense 29,400 Net operating income $1,400 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of lost year? 2. Prepare an income statement for last year using variable costing