Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $960. 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 units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative: 0 230 200 30 $110 $320 $ 30 $ 10 $ 69,000 $27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $192,000 Cost of goods sold 152,000 Gross margin 40,000 Selling and administrative expense 29,000 $ 11,000 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.