EXERCISE 4-2 Refer to the data in Exercise 4-1 for Ida Sidha Karya Company. The absorption costing income statement prepared by the company's accountant for last year appears as shown: 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. Explain the difference in net operating income between the two costing methods. EXERCISE 4-1 Variable and Absorption Costing Unit Product Costs bes-ilat of Bali in Indonesia. The company produces a handcrafted Balinese musicas ansa ing for the company's operations last year follon; ExERCISE L-2 Refer to the data in Exercise 4-1 for Ida Sidha Karya Company. The absorption costing income satalement prepared by the company's accountant for last year appears as shown: 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. Explain the difference in net operating income between the two costing methods