Ida Sidha Karya Company is a family-owned company located 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 $920. 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 Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income. The absorption costing income statement prepared by the company's accountant for last year appears below: Req 1 $ $ $ $ Req 2A Sales $ Req 28 0 275 260 $ 239,200 195,000 44,200 36,900 7,300 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? 110 320 40 15 $ 77,000 $ 33,000 Complete this question by entering your answers in the tabs below. Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement