Ida Sidha Karya Company is a family-owned company located in the village of Glanyar 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 to a Canadian importer for $870. Selected data for the company's operations last year follow: 260 230 38 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 105 325 45 15 $ 65,000 $ 21,00 An absorption costing income statement prepared by the company's accountant appears below: Soles Cost of goods sold Gross margin Selling and administrative expenses Operating income $200,100 166 750 33,350 24.450 $ 8,900 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total food manulachung vorhead in dig inventory 2. Prepare an income statement for the year using the variable costing method. IDA SIDHA KARYA COMPANY Variable Costing Income Statement Variable expenses Fixed expenses