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 $860. Selected data for the company's operations last year follow: 320 285 35 Units in beginning inventory Units produced Units sold tinita in ending Inventory Variable conta per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Tixed costs Fixed manufacturing overhead Txed selling and administrative 135 355 30 15 . $ $ 64,000 $ 27,000 The absorption costing Income statement prepared by the company's accountant for last year appears below: Cost of goods sold Grean Selling and distrative expense Het operating income $ 245,100 205 200 39,900 21.225 1,625 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. The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gronn margin Selling and administrative expense Net operating income $ 245, 100 205, 200 39,900 31,275 $ 8,625 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of las year? 2. Prepare an income statement for last year using variable costing. Complete this question by entering your answers in the tabs below. Required: Required 2 Under absorption costing, how much fixed manufacturing overhead cost is included in the company's Inventory at the end of last year? Find manufacturing over and cont included in inventory Required 2 > 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 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Required 1