planation of Difference in Net Operating Income ILO6-2 LO6-2] Exercise 6-2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income[ ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bal in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. 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 310 280 30 Direct materials Direct labor Variable Variable selling and administrative $ 130 $ 350 S 50 $ 40 Fixed costsling and adriehead Flxed manufacturing overhead Fixed selling and administrative 62,000 $ 26,000 The absorption costing income statement prepared by the company's accountant for last year appears below Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 254,800 204,400 50,400 37,200 $ 13,200