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 240 Units in ending inventory 40 Variable costs per wit: Direct materials $115 Direct labor $ 335 Variable manufacturing overhead $ 35 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 63,000 Fixed selling and administrative $ 23,000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales $ 211,200 Cost of coods sold 170,400 Gross nargin Selling and administrative expense 29,000 Net operating incone $ 11,800 40.800 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 Required 1 Required 2 Under absorption costing, how much fixed manufacturing overhead cost is in last year? Fixed manufacturing overhead cost included in inventory Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement 0 0 0 $ 0 O