Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data for the companys operations last year follow:

Units in beginning inventory 0

Units produced 310

Units sold 280 Units in ending inventory 30

Variable costs per unit: Direct materials $130

Direct labor $ 350

Variable manufacturing overhead $ 50

Variable selling and administrative $ 40

Fixed costs:

Fixed manufacturing overhead $ 62,000

Fixed selling and administrative $ 26,000

The absorption costing income statement prepared by the companys accountant for last year appears below:

Sales $ 254,800

Cost of goods sold 204,400

Gross margin 50,400

Selling and administrative expense 37,200

Net operating income $ 13,200

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.