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 $950, Selected data for the company's operations last year follow: Unita in beginning inventory 0 Units produced 270 Units sold 235 Unita In ending inventory 35 Variable conta per unit Direct materiais $ 1-10 Direct Labor $ 330 Variable manufacturing overhead 6.30 Variable selling and administrative 5 20 Fixed costs Tixod manufacturing overhead 9 B1,000 Fixed selling and administrativo 622,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Coat of goods sold Cross margin Solling and administrative expense Niet operating Income 223,250 100 950 42,300 26,700 $ 15,600 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