2 Exercise 7-2 (Algo) Varlable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-21 8.33 points eBook Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 240 Units sold 225 Units in ending inventory 15 Variable costs per unit: Direct materials $140 Direct labor $ 360 Variable manufacturing overhead $ 35 Variable selling and administrative $20 Fixed costs: Fixed manufacturing overhead $ 66,eee Fixed selling and administrative $ 28,eee The absorption costing Income statement prepared by the company's accountant for last year appears below: Hint Print Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 220,5ee 182,250 38,250 32,500 $ 5,750 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 1 Required 2 Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? Fixed manufacturing overhead cost included in inventory Mc Graw Hill