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 unit:

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 goods sold $170,400$

Gross margin $40,800$

Selling and administrative expense $29,000$

Net operating income $ $11,800$

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.