Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850 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 unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and adeinistrative Fixed costs: Fixed manufacturing overhead Fixed selling and adeinistrative e 25e 225 25 100 320 40 28 $ 6e, eee $ 20,eee The absorption costing income statement prepared by the company's accountant for last year appears as shown: $ 191,25e 157, 580 33,75e 24, 58e Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 9,25e 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. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B 8 of 13 Next