Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the company's operations last year follow: 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 0 240 225 15 $120 $ 330 $ 50 $ 25 $ 72,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales 222,750 Cost of goods sold 180,000 Gross margin 42,750 Selling and administrative expense 32,625 $ 10,125 Net operating income 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.