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 $255$

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 company$$s 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 end of last year?

$2.$ Prepare an income statement for last year using variable costing.