lda Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. Selected data for the company's operations last year follow; Units in beginning inventory 0 Units produced 280 Units sold I 265 Units in ending inventory 15 Variable costs per unit: Direct materials $150 Direct labor $ 370 Variable manufacturing overhead $ 45 Variable selling and administrative $ 30 Fixed costs: Fixed manufacturing overhead 5 70,000 Fixed selling and administrative 5 30,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $ 259,700 Cost of goods sold 215,975 Gross margin 43,725 Selling and administrative expense 37,950 Net operating income $ 5,775 Required: 1. Under absorption costing, how much xed manufactukng 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