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 companys 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	$ 63,000
Fixed selling and administrative	$ 32,000

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

Sales	$ 224,400
Cost of goods sold	173,400
Gross margin	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 year? 2. Prepare an income statement for last year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales Variable expenses: Units in beginning inventory 0 0 0 $ 0