Exercise 7-2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $870. Selected data for the company's operations last year follow. e 260 230 30 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 105 325 45 15 $65,000 $ 21,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $200, 100 166,750 33, 350 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 24,450 $ 8,900