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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $$990.$ Selected data for the company$$s operations last year follow:

Units in beginning inventory $0$

Units produced $200$

Units sold $180$

Units in ending inventory $20$

Variable costs per unit:

Direct materials $$120$

Direct labor $ $340$

Variable manufacturing overhead $ $40$

Variable selling and administrative $ $30$

Fixed costs:

Fixed manufacturing overhead $ $56,000$

Fixed selling and administrative $ $24,000$

The absorption costing income statement prepared by the company$$s accountant for last year appears below:

Sales $ $178,200$

Cost of goods sold $140,400$

Gross margin $37,800$

Selling and administrative expense $29,400$

Net operating income $ $8,400$

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.