235 15 Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $950. Selected data for the company's operations last year follow Units in beginning inventory Units produced 250 Units sold Units in ending inventory Variable costs per unit: Direct materials $135 Direct labor $ 345 Variable manufacturing overhead $ 30 Variable selling and administrative $20 Fixed costs: Fixed manufacturing overhead $ 65,000 Fixed selling and administrative $ 25, eee The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 223,250 188,950 42, see 29,700 $ 12,6ee Required: 1. Under absorption costing, how much foxed 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