Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $880. Selected data for the company's operations last year follow: Units in beginning inventory 0 Units produced 280 Units sold 255 Units in ending inventory 25 Variable costs per unit: Direct materials $ 105 Direct labor $ 315 Variable manufacturing overhead $ 35 Variable selling and administrative $ 40 Fixed costs: Fixed manufacturing overhead 5 63,000 Fixed selling and administrative $ 32,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $ 224,400 Cost of goods sold 173,400 Gross sargin 51,000 Selling and administrative expense 42,200 Net operating income $ 8,800 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