Exercise 6-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income (L06-2] Ida 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 280 265 15 units in beginning Inventory Units produced Units sold Units in ending Inventory Variable conta per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Tixed costs Fixed manutacturing overhead Fixed selling and administrative $ $ 5 $ 150 370 45 30 $.70,000 30.000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cont of goods sold Gros margin Billing and administrative expense Het operating income 259,700 2212275 43,725 37950 5 5,775 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales Variable expenses Variable selling and administrative expense Fixed selling and administrative expense 0 Gross margin Selling and administrative expense Het operating income 43,725 37,950 5,775 S 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Under absorption costing, nw much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? Fixed manufacturing overhead cost included in inventory $ 3,750 Required 1 Required 2 >